Dubai’s property prices have surged by 124% since 2020, though recent data indicates a slight deceleration. The growth rate in the real estate market moderated from 15.9% in the first quarter of the year to a 0.3% decline in the second quarter, according to a report by an international property consultancy.
Global Real Estate Trends
On the global stage, Manila has emerged as the leader in Knight Frank’s Prime Global Cities Index, posting a 26% increase in prime residential prices. This index tracks the movement of prime property prices across 44 cities worldwide, focusing on nominal prices in local currencies. However, overall price growth in these cities has slowed, from 4.1% in the first quarter to 2.6% in the second quarter.
Market Analysis and Future Outlook
The current growth rate is significantly below the long-term average of 5.3%, suggesting that lower interest rates are necessary for sustained growth. Stockholm has shown the most improvement in annual growth during the second quarter of 2024.
Liam Baily, Global Head of Research at Knight Frank, commented that the slowing price growth in global prime markets indicates that the recent surge in market pricing is losing momentum. He emphasized that the future trajectory of price growth will largely depend on central banks’ decisions regarding interest rate cuts over the next year.
Dubai and Miami’s Market Dynamics
Dubai’s remarkable 124% increase in property prices since 2020 seems to have reached a natural pause. Miami, another city that experienced significant growth during the pandemic, has also shown resilience, with an 8% increase in property prices over the past year.
In the first half of 2024, Dubai recorded over 74,000 property sales, amounting to Dh191 billion, representing a 38% year-on-year increase. Sales volumes also rose by 36%, with a total of over 74,000 transactions.
Indian Real Estate Market
Mumbai and New Delhi have seen their property prices rise by 13% and 10.6% respectively on an annual basis, while Bengaluru reported a more modest increase of 3.7%. The premium segment has been a key driver of this growth, reflecting the rising affluence among the wealthy and their preference for lifestyle-oriented properties. Shishir Baijal, Chairman and Managing Director at Knight Frank India, anticipates that this positive momentum will continue throughout 2024, supported by a strong economic outlook.
European Market Trends
Europe has also shown positive momentum, with six of the ten fastest-improving markets located in the region, led by Stockholm. However, markets such as Madrid, Dubai, and several in New Zealand, including Christchurch, Wellington, and Auckland, are experiencing a slowdown in growth, as highlighted in the report.
Published on: 26 Aug 2024
Source: https://www.khaleejtimes.com/business/dubai-property-prices-surge-124-since-2020
