Dubai is a global leader for capital value appreciation

Dubai’s prime residential property market grew at the fastest pace among all the global cities in 2023 and will continue its strong run in 2024, outperforming almost all the major cities yet again.

Jelena Cvjetkovic, director, global residential real estate consultancy Savills said, “Dubai has been a global leader for capital value appreciation in recent years. Prices have increased by 17.4 per cent in 2023. However, it is likely that this rate of growth will slow over the course of 2024 to around 4 to 5.9 per cent as we see a return to a more 'normal market."

Despite slower growth, Dubai will be the second fastest growing market in 2024 after Sydney, benefitting from increases in their high-net-worth populations.

Cvjetkovic added that 17.4 per cent capital value increases were more than seven percentage points ahead of the second-place market, though the rate of growth slowed to 5.6 per cent in the second half.

In 2023, Dubai outpaced Mumbai, Bangkok, Tokyo, Sydney, Shanghai, Madrid, Barcelona, Geneva, Singapore and other cities in terms of capital value appreciation.

In 2024, Savills projects grew between 4 to 5.9 per cent in Dubai’s prime property segment, second fastest after Sydney’s 8 to 9.9 per cent.

Savills said the Dubai prime market is still relatively competitively priced by global standards, at $850 per square foot, offers a comparatively low cost of living, a relatively easy visa process, and a warmer climate which continues to attract international and domestic buyers.

The cost of buying, owning and selling a $2 million property in Dubai is also cheaper than in Singapore, Hong Kong, London, New York, Tokyo, Paris, Mumbai and other cities.

In terms of prime residential rental value growth, Dubai was among the top four cities after Lisbon, Berlin and Singapore. Rents in Dubai are still higher than in Bangkok, Mumbai, Sydney, Madrid, Kuala Lumpur, Beijing, Barcelona and many other cities. But rents are lower than in New York, Hong Kong, Los Angeles, Singapore, Paris, Geneva, Amsterdam and numerous other major cities.