ValuStrat: Residential capital values drop 1.6% to 67 points in Aug 2020
Overall, sales charts remained dominated by properties developed by Emaar, Nshama, Dubai Properties, and Nakheel
Following the ease of restrictions in July, the residential capital values in August 2020 stood at 67 points, which despite dropping 1.6% monthly has improved by 0.3% compared to April – June movement restriction period.
According to ValuStrat Price Index, annually, residential capital values declined 13.8%.
However, August witnessed a significant growth trend in sales activity YoY from August 2019, and over the previous months and, as secondary market house prices become increasingly affordable.
The ValuStart report stated that since the lifting of movement restrictions, home sales transaction volumes in Dubai continued in what looked like a V-shape recovery trend.
The report added that all properties monitored by the VPI saw monthly capital values decline by as much as 1.9%, including the likes of apartments in Jumeirah Village Circle.
Emirates Hills, Arabian Ranches, Jumeirah Lake Towers, and The Views, recorded the least registered capital value declines.
August’s sales transaction volume performance saw ready homes dominate overall residential home purchases representing two thirds share versus one third of off-plan purchases.
Compared to the previous month, ready home transactions grew 18.7%, forming a V-shaped recovery trend, and when compared to 2019, transactions jumped 46.2%.
However, due to reduced project launches by developers, August’s off-plan home sales declined 25.2% when compared to July 2020.
Overall, sales charts remained dominated by properties developed by Emaar, Nshama, Dubai Properties, and Nakheel.
Meanwhile, top off-plan locations in August were within Jumeirah Village, Arjan, International City, and Dubai Hills Estate, with most transacted ready homes being in Town Square, Dubai Marina, Jumeirah Village, and International City.