Dubai’s residential real estate market witnessed its slowest capital growth in 20 months this February, indicating signs of maturity and increased property deliveries. According to the latest data from the ValuStrat Price Index (VPI), the market’s growth rate has cooled slightly, though overall performance remains strong—especially in the villa segment.

Slower Growth, But Strong Gains in Villas.

The VPI showed a 1.6% month-on-month increase and a 26.5% year-on-year rise, reaching 207.5 points (base: Jan 2021 = 100). Villa capital values rose by 2% monthly and a remarkable 30.8% annually. Leading the annual gains were villas in Jumeirah Islands (42.3%), Palm Jumeirah (41.8%), Emirates Hills (31.2%), and The Meadows (29.9%). On the other hand, Mudon saw the slowest villa growth at 10.5%, remaining stable for six consecutive months. Dubai’s freehold villas are now, on average, 57% above the previous market peak and 160% higher than post-pandemic levels.

Apartment Market Still Rising.

Apartment prices saw a 1.2% monthly increase—slightly lower than January’s 1.4%—with annual growth at 22.2%. Top-performing areas for apartment capital gains included The Greens (28.9%), Palm Jumeirah (26.3%), Dubailand Residence Complex (25.7%), The Views (25.4%), and Town Square (25.1%). In contrast, International City and Dubai Sports City recorded more modest gains at 15.4% and 17.9% respectively. Average apartment values remain 9% below the previous market peak but have climbed 65% from post-Covid levels.

Off-Plan Sales Dominate.

Oqood registrations for off-plan properties jumped 22.2% month-on-month and 59.5% year-on-year, accounting for 70.8% of total sales in February. Key off-plan locations included Jumeirah Village Circle (7.1%), The Valley (6.5%), Damac Island City (5.5%), Emaar South (5%), and Dubailand Residence Complex (4.9%). Dubai Silicon Oasis even broke its record for the highest number of off-plan homes traded in a single month.

Ready Homes Still in Demand.

Sales of ready homes also grew, increasing by 12.8% monthly and 9.8% annually. Emirates Hills recorded its highest-ever number of ready home transactions. Other top-performing areas for secondary sales included Jumeirah Village Circle (9.9%), Business Bay (7.4%), International City (5.6%), Dubai Marina (5.4%), Downtown Dubai (5.2%), and Jumeirah Lake Towers (3.3%). There were 31 sales of ready properties priced over Dh30 million in communities like Dubai Hills Estate, Palm Jumeirah, and Jumeirah Bay Island.

Top Developers and Market Leaders.

In February, developer sales were led by Emaar (17.5%), Damac (12.7%), Sobha (4.8%), Nakheel (4.3%), Dubai Properties (4.3%), and Samana (2.6%). These names dominated both off-plan and ready property segments, shaping the trajectory of Dubai’s real estate landscape.