Dubai Home Values Post First Monthly Gain Since February, ValuStrat Index Shows

Capital values increased 0.1 per cent from September, with villas and apartments each up 0.1 per cent, the index showed. Values were still 5.7 per cent lower than in October last year.

The gain is small, but it is the first monthly rise since the correction that began in late February. ValuStrat's second-quarter review, published in July, put the cumulative fall in its residential index since late February at 10 per cent, with values dropping 6 per cent in March, 2 per cent in April and 1 per cent in each of May and June. Monthly declines narrowed further through the third quarter.

October's improvement was broad. None of the 72 communities ValuStrat tracks recorded a monthly decline, and 19 posted gains, according to the report.

Buyers also moved towards completed property. Ready-home transactions rose 23.9 per cent from September to 3,602, while off-plan sales eased to 7,042. Off-plan deals still made up about two-thirds of residential transactions, a share that leaves the market heavily dependent on developers' project pipelines and buyers' willingness to pay for homes that will be delivered years from now.

Established villa communities led annual gains. Jumeirah Islands values were up 7.3 per cent year on year and Emirates Hills 4.3 per cent. Among apartment districts, Al Quoz Fourth rose 3 per cent and Dubai Sports City 2.5 per cent over the year.

The top of the market stayed active. October recorded 24 ready-home transactions above Dh30 million, including nine above Dh50 million, concentrated in Palm Jumeirah, Emirates Hills, Dubai Hills Estate, DIFC, Al Barari, The World Islands and Dubai Marina.

A single month of 0.1 per cent growth leaves the citywide index well short of its levels before February. Whether October marks the bottom will depend on the next few readings, particularly on whether off-plan sales recover alongside demand for ready homes.