Residential properties across Dubai displayed an overall 11.5% annual fall in capital values for May, a new report from local consulting firm ValuStrat has found.

The VPI – Residential Capital Values for Dubai – stood at 70.6 points, declining at a continued accelerated monthly rate of 1.9%. The weighted average residential capital value per square foot in Dubai in May fell below the AED900 mark for the first time since the 2010’s trough and is currently at AED898 per square foot.

The COVID-19 pandemic limited people’s movement, impacting sales enquiries, property viewings by prospective buyers, as well as physical inspections by valuation surveyors.

All properties monitored by VPI saw monthly capital values drop by as much as 2.1%, including apartments in Jumeirah Village, Dubai Marina, Business Bay, Discovery Gardens, Jumeirah Beach Residences, Remraan, and villas in Jumeirah Islands and Al Furjan.

The lowest registered capital value declines were found in Dubai Production City, International City, Arabian Ranches and The Meadows.

With stay-at-home measures slightly relaxed, the cash sales transaction volumes is slowly improving, the report said. It added that May figures were only up by 1%, but still better than the weak performances registered in April.

According to ValuStrat, there was an improvement in ready homes activity, as cash sales volumes were 39% higher than April. However, May’s off-plan homes sales declined 10% when compared to April.

Properties developed by Sohba, Emaar, Nakheel and Seven Tides topped the sales charts overall, stated the top consultant in its report.

Top off-plan locations transacted during May were in MBR City District One, Sobha Hartland, Jumeirah Village, Jumeirah Lake Towers and International City. Most transacted ready homes were Dubai Marina, Jumeirah Village, Dubai Sports City, International City and Al Furjan, it concluded.