Dubais Prime Property Market Outlook for 2024: An Insight by Dubai Housing

The location of the properties also plays an important role in the sales of that particular property. Normally people try to buy houses in a location which have attracted them because there are different types of locality in Dubai and every locality has different styles. So, if a person likes a particular neighbourhood inside Dubai then there is a high chance that that person is going to buy properties in that location only. Companies like Emaar Properties launch their projects in posh areas like Dubai Creek Harbour. Emaar Oria is the newly launched property in February 2024.

Amenities that are provided by the builders here in Dubai generally provide facilities that are popular in the world. A good thing about the builders working in Dubai is that they try to bring and implement services that are not yet started in Dubai but can be provided. Several companies have years of experience in making world-class properties for housing and commercial needs that are connected to other locations in Dubai.

The income from any type of property in Dubai is also very profitable where the owner of the property can rent out their house or can sell after a few years with increased pricing. This shows that the properties in Dubai have better chances of a good percentage of ROI than other locations in the world. 

Dubai is also now counted as the hotspot for luxurious properties in UAE where top celebrities from all around the world also have one or two properties here or there in posh areas like Palm Jumeirah, Jumeirah Beach Residences (JBR), and more. The properties that are bought by the rich people are very expensive and come with exclusive amenities and services.  Properties like Binghatti Phantom in JVC (Jumeirah Village Circle) make a good choice because they can be rented out very easily.

In a better showcase of resilience and growth, Dubai's prime residential properties led the global market with a remarkable 17.4% increase in capital values in 2023, as highlighted by Dubai Housing. This growth starkly contrasts with the modest 2.2% average seen across thirty major cities worldwide. Despite a slight moderation to 5.6% in the latter half of the year, Dubai's performance significantly eclipsed the global norm, underscoring its dominant position in the luxury real estate sector.

Dubai Housing points out that Dubai's market remains attractively priced on a global scale, with prime real estate going for $850 per square foot. A combination of factors, including competitive pricing, a lower cost of living compared to other major cities, streamlined visa processes, and its welcoming climate, continues to draw both international and local investors.

The latter half of 2023 saw varying impacts of global economic uncertainties across different areas. While Asia Pacific cities, led by Mumbai, showed robust growth, Hong Kong faced a downturn, with a 3.7% decrease in capital values amidst political and economic unrest. Meanwhile, cities like New York and San Francisco saw declines influenced by the tech sector's instability and the shift back to office work.

The professionals from Dubai Housing comment on the tempered growth expectations for prime residential markets in 2024 amidst economic uncertainties and higher interest rates. A modest growth forecast of 0.6% across the surveyed cities indicates a normalisation following years of significant gains.

Sydney and Dubai are poised to lead in prime residential price growth in 2024, driven by increasing high-net-worth populations and sustained demand. Sydney faces a supply shortage against rising demand, which could push prices up by 8 to 9.9%. But Dubai is expected to see a more stable growth of 4 to 5.9% because of its good number of sales in 2023 which has grabbed huge attention.

One thing to look at here is that cities like Los Angeles, New York, San Francisco, Seoul, London, Singapore, and Hong Kong are projected to see declines due to higher interest rates and economic challenges. This makes Dubai an attractive market.

Dubai not only excelled in capital value growth but also saw significant rental price increases, nearly doubling the global city average with under 10% growth. Lisbon emerged as the leader in prime rental growth, with a 39% increase. Dubai distinguished itself in yield performance as well, offering around 4.8% returns, crossing the 3.1% average across the global cities that were studied. The affordability of property transactions in Dubai, with costs under 10% of the purchase price, further enhances its attractiveness in comparison to the 15% average elsewhere.

Communities that have housing projects from top builders of Dubai like Emaar Properties, Damac Properties, Binghatti Developers, Danube and more are among the sought-after builders by the buyers because of their timely delivery of projects and high chances of getting Dubai VISA. There are also attractive offers that are given during the expo programmes organised by companies that are working in the field of real estate. 

The developers working in Dubai will launch more properties in 2024 to grab buyers and investors from other countries. Dubai Housing anticipates 2024 as a pivotal year for the global real estate market, with potential interest rate adjustments by main banks possibly revitalising prime property markets later in the year. Find more information about the projects in Dubai here at Dubai Housing’s Why Invest page.