Dubai’s luxury property market has seen a remarkable 124% increase since 2020, reflecting the strength of the city’s real estate market over the past years. After 16 consecutive quarters of growth, recent months have shown a slight slowdown in the pace of growth, with the rate of price increase reflecting a 0.3% decline in Q2 from 15.9% in Q1 2024, according to Knight Frank’s report. Despite this slight slowdown, Dubai continues to be one of the fastest growing real estate markets in the world, supported by the significant expansion of the real estate sector during the Covid-19 pandemic. In the first half of 2024 alone, more than 74,000 real estate transactions were recorded in the city, with a total value of AED 191 billion, an increase of 38% compared to the same period last year. Sales volumes also grew by 36%.
Dubai’s luxury property market has seen a remarkable 124% increase since 2020, reflecting the strength of the city’s real estate market over the past years. After 16 consecutive quarters of growth, recent months have shown a slight slowdown in the pace of growth, with the rate of price increase reflecting a 0.3% decline in Q2 from 15.9% in Q1 2024, according to Knight Frank’s report. Despite this slight slowdown, Dubai continues to be one of the fastest growing real estate markets in the world, supported by the significant expansion of the real estate sector during the COVID-19 pandemic. In the first half of 2024 alone, more than 74,000 real estate transactions were recorded in the city, with a total value of AED 191 billion, an increase of 38% compared to the same period last year. Sales volumes also grew by 36%.
Rapid expansion
This rapid expansion comes amid rising demand for luxury and high-quality properties, as Dubai has attracted investors from all over the world. “After a 124% increase since the start of 2020, Dubai could do with a break,” said Liam Bailey, Knight Frank’s global head of research.
Globally, Manila topped Knight Frank’s Global Cities Index with a 26% increase. The index uses valuation data to track the movement of prime residential property prices in 44 cities around the world, and reflects nominal prices in local currency.
Across all 44 cities tracked by the index, annual price growth slowed from 4.1% in the first quarter to 2.6% in the second quarter. This recent rate of growth, well below the long-term average of 5.3%, reflects the need for interest rates to be cut before growth can resume in earnest.
Stockholm is the most improved market in terms of annual growth in the second quarter of 2024.