Apartments in some areas of Dubai saw single-digit improvement as investors return to market.

Dubai's real estate sector continued its strong upward trend in terms of price valuation as both villa and apartment rates showed marked improvements in August as property investors returned to the market.

For only the second time in six years, all 13 villa locations and 21 apartment areas monitored by the real estate consultantcy ValuStrat's value price index (VPI) have seen their capital values either stabilised or improved last month -- when compared to July.

For villas, the highest annual capital gains were found in Arabian Ranches (22 per cent), Jumeirah Islands (20.8 per cent), Dubai Hills Estate (18.5 per cent) and The Lakes (18.3 per cent).

Annual capital value performance of Dubai’s apartments, which represent 87 per cent of the residential market, were a mixed bag as compared to villas. A third of all apartments witnessed negative annual growth, a third stable, and a third had single-digit annual capital growth.

"Sales transaction volumes up 49 per cent last month compared to July. Month-on-month performance saw ready sales rose 57 per cent and off-plan Oqood (contract) registrations expanded 42 per cent," the report said.

For VPI monitored apartments, the top annual performers in terms of capital gains were in Palm Jumeirah (6.8 per cent), Jumeirah Beach Residence (6.1 per cent), Al Furjan (4.6 per cent) and Al Quoz Fourth-Al Khail Heights (4.1 per cent).

Topping the sales charts overall were properties developed by Emaar (21.5 per cent), Nakheel (8.6 per cent), Damac (6.1 per cent), and Dubai Properties (6.1 per cent), the report said.

Top off-plan locations transacted in August were in Dubai Harbour (11.8 per cent), Business Bay (9.2 per cent), Jumeirah Village (nine per cent) and Sobha Hartland (7.8 per cent).

Most transacted ready homes were located in Jumeirah Village (8.4 per cent), Business Bay (7.5 per cent), Al Furjan (7.2 per cent), Dubai Marina (6.9 per cent), Downtown Dubai (five per cent), and Dubai Hills Estate (4.5 per cent).