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Dubai records a rapid real estate market recovery in Q3 2021 with a price growth of about 10% and a net profit return of at least 6.1%.


According to data from ValuStrat, a leading international consulting group, the Dubai Property Price Index shows an increase of 5.1% in each quarter of 2021 and 9.8% year-on-year in total, with villas accounting for the bulk of the recovery. For the first half of 2021, the best areas in terms of capital gains were Jumeirah Beach Residence and Palm Jumeirah, with figures of 11.2% and 9.4%, respectively.


Against the backdrop of the ongoing market recovery, it was found that over Q3 2021 the selling price of real estate in Dubai rose by almost 10% compared to the previous year. Despite the fact that the villa submarket constitutes a smaller portion of the emirate’s overall real estate market, this segment showed a quarterly growth of 8.9% and a year-on-year increase of 21.3%. According to real estate consultants, the highest capital gains for villas were in Arabian Ranches at 26.8%, Jumeirah Islands at 26.4% and The Lakes at 23.6%.

According to ValuStrat the value of apartments increased by 2.4% compared to the previous quarter of this year, and by 2.6% compared to 2020.

Q3 2021 saw the completion of 16,654 apartments and 3,397 villas, equivalent to 49% of experts’ preliminary estimates for the year. Moreover, according to ValuStrat, the second half of 2021 is likely to be the best period of this decade in terms of residential investment, as the volume of transactions since the beginning of the year has already exceeded all expectations for the period since 2010.

It’s worth noting that non-mortgage-related completed property sales were up 68.4% year-over-year compared to an increase of 128.4% in off-plan property sales, which is not surprising given the restrictions on city travel and international travel due to the COVID-19 pandemic last year. The average price per square foot reached AED 1,026 (USD 279.34), similar to price levels seen 7 years ago.

In addition, ValuStrat noted in its report that residential rental prices in Q3 2021 rose by 3.6% quarter-on-quarter and 6.9% year-on-year, while net investment returns across Dubai averaged 6.1%. Such figures record the highest price growth since 2015, with the occupancy rate of residential units estimated at 81.3%.