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DubaiResidentialCapital Values
2020A
pril
The VPI – Residential Capital Values for Dubai as of April 2020 stood at 71.9 points, declining at accelerated monthly rate of 1.9%, -10.8% annually. The COVID-19 coronavirus pandemic continued to show its impact during the month of April as demand decreased due to the stay at home campaign supporting the nationwide disinfection program.
All properties monitored by the index saw monthly capital values marginally decline, the highest of which was apartments in Jumeirah Village and Dubai Production City with -2.1%, and the lowest registered capital value decline was -1.6% in The Greens. The weighted average residential price per square foot fell below AED 1,000 since August 2019, currently at AED 915 per sq ft, not too dissimilar to average rates during 2012/11.
With the stay-at-home measures put in place, it came as no surprise that April cash sales transaction volume performance was just half of what was reported for March. Ready homes sales volume witnessed a steep monthly fall of 75%, off-plan homes sales declined 32% when compared to March. Properties developed by Emaar, Dubai Properties, Dubai Holding and Danube, topped the sales charts overall. Top off-plan locations transacted during April were in Dubai Creek Harbour, Jumeirah Village, Umm Suqeim Third, and Jumeirah Beach Residence. Most transacted ready homes were in Palm Jumeirah, Dubai Marina, Town Square, Arabian Ranches and Downtown Dubai.
ValuStrat Price Index - Dubai Residential Capital ValuesBase: Jan 2014=100
71.9
Monthly Change
-1.9%
Annual Change
-10.8%
Weighted Average Value per SQFT
915AED
Weighted Average Capital Value
1,685,686AED
1 | Residential Capital Values - March 2020
www.valustrat.com/vpi | 2
Sales ResidentialPrices (AED/SQFT)2006 YTD
VPI ResidentialCapital Values2014 YTD
www.valustrat.com/vpi | 2
1000
2000
1500
500
0
2006
2007
2009
2011
2012
2013
2015
2016
2017
2018
2019
2008
1,950
2010
898
2014
1,380
2020
940
2014 2015 2016 2017 2018 2019 2020
120
100
80
60
0
20
40
Jan
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Dec Jan
112.9
Jan
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Dec
Feb
Jan
Feb
Mar
Apr
71.9
Source: 2006-2009 Market Listing, 2010-YTD DLD (Ready Cash Sales)
Source: ValuStrat, Base:Jan 2014=100
TypicalVillas
Location
Al Furjan
Arabian Ranches
Emirates Hills
Jumeirah Islands
Jumeirah Park
Jumeirah Village Villas
Meadows
Palm Jumeirah Villas
The Lakes
Victory Heights
Capital Value (AED)
3,343,213
2,871,888
31,450,000
5,099,060
4,013,284
1,698,820
3,843,050
11,590,000
3,026,400
5,016,176
VPI
66.3
64.4
89.7
63.5
68.9
68.3
65.9
98.2
72.3
70.0
Monthly Change
-2.0%
-1.9%
-1.9%
-2.0%
-2.0%
-2.0%
-1.8%
-1.8%
-1.9%
-1.9%
Annual Change
-10.4%
-11.1%
-8.5%
-10.5%
-10.0%
-13.6%
-9.0%
-7.5%
-10.2%
-10.3%
3 | Residential Capital Values - March 2020
TypicalApartments
Location
Burj Khalifa
Business Bay
Discovery Gardens
Downtown Dubai
Dubai Marina
Dubai Production City
Dubai Sports City
International City
Jumeirah Beach Residence
Jumeirah Village
Motor City
Palm Jumeirah
The Greens
Remraam
The Views
Jumeirah Lake Towers
VPI
72.9
79.8
72.0
71.4
68.3
76.6
78.1
66.7
71.6
63.3
72.1
86.1
79.1
79.2
69.5
75.0
Capital Value (AED)
2,265,120
948,010
345,092
1,332,985
1,689,600
318,861
835,202
318,890
2,201,093
1,437,920
655,215
1,181,750
1,890,060
434,910
728,403
1,408,250
Monthly Change
-1.8%
-1.9%
-2.0%
-1.9%
-1.9%
-2.1%
-1.9%
-1.9%
-1.7%
-1.9%
-2.1%
-2.0%
-2.0%
-2.0%
-1.6%
-1.8%
Annual Change
-10.8%
-11.2%
-13.3%
-9.8%
-10.2%
-13.5%
-9.1%
-8.1%
-10.2%
-10.3%
-11.1%
-10.3%
-11.0%
-11.1%
-10.4%
-10.6%
www.valustrat.com | 4
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5 | Residential Capital Values - March 2020
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Copyright © ValuStrat Consulting FZCo. 2020This document is the property of ValuStrat Consulting FZCo and must not be reproduced or transmitted in any form or by any means, without the prior written consent of ValuStrat Consulting FZCo. We welcome your constructive feedback and any corrections that may need to be made to this document. ValuStrat Consulting FZCo does not accept any liability in negligence or otherwise for any damage suffered by any party resulting from reliance on this document.
The ValuStrat Price Index for Dubai’s office capital values is a valuation-based index constructed to represent the quarterly price change experienced by typical office space within Dubai. The ValuStrat Price Index for Dubai’s residential capital values is a valuation-based index constructed to represent the monthly price change experienced by typical residential units within Dubai. The ValuStrat Price Index for Dubai’s residential rental values is constructed to represent the quarterly rental change experienced by typical residential units within Dubai. The VPI applies weighted averages using data samples representing more than 90% of all property types across the city’s freehold locations and is built by our expert RICS Registered Valuers.
VPI Online www.valustrat.com/vpi
VPIValuStrat Price Index
StrategicPartners of
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ValuStrat is a leading consulting firm headquartered in Dubai providingAdvisory, Valuations, Research, Industrial Consulting and Due Diligenceservices across a diverse range of industry sectors since 1977. Offices inthe UAE, UK, Saudi Arabia, Pakistan and Qatar serve over 1,000 corporateclients in the Middle East. Client base includes financial institutions, localcorporates, multinationals, governments, SMEs, family businesses andstartups. Some of the key sectors serviced by ValuStrat’s consulting teaminclude real estate, hospitality, healthcare, education, manufacturing, retail,entertainment, transport and FMCG. ValuStrat is a Royal Institution ofChartered Surveyors (RICS) Regulated Firm and the first company headquartered in all of MENA and Asia to be accepted into the prestigious RICSTech Affiliate program.
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