Villas and apartments in Dubai recorded a strong increase in annual capital gains in the first quarter of 2023 as the real estate sector in the emirate continued to stagnate during the “Covid-19” pandemic.
Villa prices, which make up 13 percent of Dubai’s residential sector, posted a 17.1 percent growth in value in the three months to the end of March, while apartment prices rose 6.6 percent, according to a report by real estate consultancy Valiostrat.
The Valeostraat price index, which covers Dubai’s residential market, rose 11.4% year-on-year to 88 points.
The villa price index rose 2.4% in the first quarter, a 3% difference from the peak of prices in 2014, the report said.
Palm Island, Jumeirah Beach District, The Greens and Discovery Gardens are the best areas in terms of quarterly capital appreciation for apartments.
Persistence of gains
In March, Valiostrat pointed out that capital gains for villas were flat, while apartments saw a slight acceleration for the first time since the coronavirus pandemic.
The latest reports come after real estate sales in Dubai and Abu Dhabi increased in the first quarter of the year, in light of strong momentum in the UAE’s economy due to higher oil prices and new government initiatives.
The total value of real estate sales transactions in Abu Dhabi more than tripled to 11.6 billion dirhams ($3.15 billion) in the first three months of this year, compared to 3.6 billion dirhams in the same period last year. A property finder website for real estate advertising. .
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