Property consultancy firm ValuStrat has revealed that in June, the average price of villas in Dubai’s freehold areas surpassed AED 10 mn for the first time in the emirate’s real estate market history. This followed a previous threshold of AED 9.82 mn in May, Invest-Gate reports.

According to ValuStrat’s June 2024 report, the ValuStrat Price Index for real estate prices reached 178.2 points, indicating a 28.2% annual increase and a 2.2% rise compared to May. Villas recorded 226.6 points, while apartments reached 146.7 points, based on the baseline of 100 points set in January 2021.

The report highlighted that all villa communities in Dubai’s freehold areas surpassed their previous peak capital values from 2014 in June. However, in the sub-apartment market, only Palm Jumeirah has exceeded this threshold thus far.

Month-on-month, apartment prices increased by 1.9%, with a 23.4% year-on-year (YoY) rise in June. The highest yearly apartment capital gains were observed in Discovery Gardens (34.5%), The Greens (33.7%), Palm Jumeirah (31.1%), and The Views (29.7%).

Villa capital gains experienced a 2.4% increase in June compared to the previous month, and a 33.4% YoY growth. ValuStrat noted that Palm Jumeirah witnessed the highest villa gains at 43.1%, followed by Jumeirah Islands (42.5%), Dubai Hills Estate (38.5%), and Emirates Hills (33.6%).

Meanwhile, off-plan residential property registrations saw a 33% YoY increase last month, but experienced a 31.9% decline compared to the previous month.

The report also highlighted a decrease in the number of ready home transactions, which experienced annual declines unseen since the onset of the pandemic, falling by 19.4% from May and 2.6% YoY.