Dubai has been ranked among the few cities in the world with accelerating property market growth.
The emirate is ranked along with Bangkok, Berlin, Stockholm, Hong Kong, Jakarta, Paris and Warsaw where the growth of the property market is accelerating, according to global real estate consultancy JLL’s Global Real Estate Perspective.
The emirate’s real estate has been consistently outperforming its global peers in terms of capital appreciation and rental returns over the past three and a half years, driven by the huge interest from foreign investors and residents in the post-pandemic period.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Importantly, the rally is also driven by the fact that Dubai’s real estate market is still much more affordable than major cities such as New York, Hong Kong, London and Paris.
Though affordability and higher returns have attracted foreign investors, high-net-worth individuals have moved to Dubai to enjoy the world-class quality of life and safety and security this city offers to residents.
Property prices in Dubai have seen a double-digit increase over the past three and a half years, which is much higher than the other major cities across Europe, the US, the Middle East and Asia.
According to Knight Frank’s 2024 Wealth Report, Dubai was the second highest performer in 2023 with a 15.9 per cent increase in luxury property prices, becoming the second fastest growing after Manila.
“The Dubai real estate market has seen continuous growth with record sales across all sectors. Notably, the end-user market which increased from 2020 due to the stability of the Emirate, has seen villa and townhouse prices increase due to low supply.
“Luxury properties in Dubai continue to attract high-net-worth individuals and investors looking for premium real estate opportunities. The city’s iconic landmarks, upscale amenities, and luxurious lifestyle offerings contribute to its appeal as a prime real estate destination,” said Provident Estate.
The JLL’s study noted that property market growth is slowing in Brussels, Sydney, London, Amsterdam, Madrid, Milan and Kuala Lumpur. In terms of rentals, Beijing, Boston, Chicago and Washington DC are seeing a decline while rents in New York, Singapore, Manila, Shanghai, San Francisco and some other cities are botting out.