Dubai is again earmarked for significant growth in prime residential property values in 2024, solidifying its position at the top of the luxury housing market.
According to the latest Prime Global Cities Index by Savills, a renowned global real estate firm, Dubai, together with Sydney, is projected to outshine other global cities with value increases ranging from 4 to 9.9 percent.
This follows Dubai’s impressive performance in 2023, where it topped the list with a remarkable appreciation rate of 17.4 percent.
Sydney’s anticipated growth is attributed to historically low inventory levels coupled with sustained demand from high-net-worth individuals. The scarcity of luxury listings is expected to drive continued price pressure in the upcoming year, further bolstering Sydney’s position as a lucrative market for investors.
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Dubai, known for its world-class infrastructure and unparalleled quality of life, is forecasted to maintain its strong performance despite a return to more normalized market activity. Growth rates of 4 to 5.9 percent are expected, underscoring the emirate’s appeal as a global city attracting international buyers seeking safety, stability, and a diverse range of property options.
Savills attributes Dubai’s continued success to its maturity as a global hub and its ability to offer an unmatched lifestyle experience. He highlights factors such as safety, stability, and a diverse property market as key drivers of investor interest in the emirate.
The city was also recently voted as the top global destination expats choose to live.
Looking at the broader picture, Savills predicts a moderate increase in residential values across the 30 cities surveyed, with an average growth rate of 0.6 percent. While most cities are expected to see gains between zero and 3.9 percent, seven locations may experience slight declines.
Beyond Sydney and Dubai, Mumbai and Cape Town have emerged as strong performers, with growth rates exceeding 3 percent over the past year. These markets are poised to continue their upward trajectory in 2024, with projected growth rates of 2 and 3.9 percent, respectively.
However, challenges loom for major American housing centers, with rising interest rates, deteriorating consumer sentiment, and economic uncertainty putting pressure on cities like San Francisco, New York, and Los Angeles. Similarly, Asian markets, including Hong Kong, Shenzhen, and Guangzhou, face risks from political unrest and stringent COVID-19 policies, which may impact property values in the short term.
Despite these challenges, Savills remains optimistic about the long-term prospects of global property markets, citing ongoing urbanization, wealth creation, and evolving consumer preferences as driving forces behind property appreciation.
While geopolitical changes may introduce volatility, overall values are expected to trend slightly higher, with Sydney and Dubai leading the charge in the luxury segment.
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