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Dubai’s housing market extended its upward trajectory in August, with fresh data showing capital values reaching new highs despite a slight moderation in monthly growth. The latest ValuStrat Price Index revealed that villas continued to outpace apartments in terms of capital appreciation, though Dubai Silicon Oasis led the increase in apartment values.
According to the report, the ValuStrat Price Index climbed to 227.3 points in August, representing a 1.4% monthly increase and a 22.1% annual rise compared with the same period last year. Against a base of 100 in January 2021, villa values have surged to 302.1 points, while apartment values stand at 178.5 points.
Villa prices remain the key driver of growth. Their capital values increased 1.8% month on month and 27.1% on an annual basis. Several communities posted standout performances, including Jumeirah Islands, where villa values jumped 39.8% over the year, and Palm Jumeirah, which saw a 39.3% increase. Green Community West recorded a 25.7% rise, and The Meadows gained 25.5%. At the lower end, Mudon registered the weakest growth at 8.8%.
The long-term trajectory underscores how much the villa segment has rebounded since the pandemic. Freehold villa values are now 190% higher than their pre-pandemic levels and 76% above the previous market peak in 2014. Analysts say this reflects both scarcity of supply in prime communities and growing demand from families seeking larger homes in secure neighborhoods.
Apartments have also recorded steady progress. Prices rose by 1.1% month on month and by 17% annually. Dubai Silicon Oasis emerged as the strongest performer, with capital values increasing by 22.7% year on year, supported by its relative affordability, road connectivity, and prospects for a future metro link. Other high-growth apartment districts included The Greens (22.6%), Remraam (22%), Dubailand Residence Complex (21.9%), Dubai Production City (21.1%), and Town Square (21%).
Some communities posted weaker gains. Business Bay saw annual apartment price growth of 14%, Discovery Gardens registered 13.5%, and International City recorded 10.2%. While apartment prices remain 2.5% below their 2014 peak, they are now 77% higher than pre-pandemic averages, reflecting a strong recovery over the past three years.
Transaction activity showed signs of shifting momentum. Off-plan Oqood registrations accounted for 77.8% of all residential sales in August. These registrations fell 22.4% compared with the previous month but increased 22.5% from a year earlier. Ready secondary-home deals fell 20.6% month on month and 2.5% annually.
Among off-plan projects, Business Bay dominated activity, accounting for 10% of transactions and marking its highest monthly total on record. Jumeirah Village Circle followed with 8.3%, while Dubai Investment Park Second (7.8%), Dubai Science Park (5.1%), Dubai South (4.1%), and Dubailand Residence Complex (3.9%) also saw notable shares.
The ready-home segment was led by Jumeirah Village Circle at 10.1%, Business Bay at 5.4%, Dubai Marina at 4%, and Downtown Dubai at 3.7%. International City accounted for 3.4%, Dubai Creek Harbour for 3.1%, and Dubai Sports City for 3.1%.
Market analysts say the data highlights a dual trend. Villas continue to outperform across the city, but specific apartment districts such as Dubai Silicon Oasis are emerging as reliable performers, attracting both investors and end users. The relative affordability of these communities, combined with infrastructure improvements and future connectivity prospects, has kept them competitive in a market where premium villa prices remain elevated.
Saadain Lari, director and head of marketing at ValuStrat, said the market maintained “its upward trajectory in August, with capital values reaching fresh highs despite a slower monthly pace of growth. Villas remain the key driver, though select apartment communities are emerging as standout performers.”
The outlook for the remainder of the year points toward continued strength, though growth rates may stabilize. Analysts suggest that while demand for villas is unlikely to abate given population growth and limited supply in prime areas, mid-tier apartment markets such as Dubai Silicon Oasis are likely to attract sustained interest as buyers look for more affordable entry points into Dubai’s property market.
Industry observers also note that the gap between villa and apartment appreciation may narrow over time, particularly as infrastructure projects and transportation links enhance the appeal of emerging neighborhoods. In the longer term, demand fundamentals remain anchored by population inflows, economic diversification, and Dubai’s position as a hub for global business and lifestyle.
For now, Dubai’s housing market continues to reflect strong underlying confidence. The steady rise in villa prices, combined with notable apartment gains led by Dubai Silicon Oasis, signals that both ends of the market remain active, offering opportunities for investors and homeowners alike.
Its affordability, location, and potential metro link have boosted demand and values.
Villa prices rose 27.1% annually, outpacing apartment growth of 17%.
Jumeirah Islands and Palm Jumeirah led with nearly 40% annual growth.
They remain 2.5% below 2014 levels but are 77% higher than pre-pandemic averages.
Off-plan accounted for 77.8% of transactions, though monthly volumes fell 22.4%.
