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Dubai property prices surge 124% since 2020

Globally, Manila has topped the Knight Frank’s Prime Global Cities Index

Published: Mon 26 Aug 2024, 7:23 PM

By
Issac John

Dubai property softens in Q2

After a 124 per cent increase since 2020, Dubai saw slight moderation in real estate price increase, slowing from 15.9 per cent growth in the first quarter to a decline of 0.3 per cent in the second quarter, according to an international property consultancy.

Globally, Manila has topped the Knight Frank’s Prime Global Cities Index with an increase of 26 per cent. The index is a valuation-based data tracking the movement of prime residential prices across 44 cities worldwide. The index tracks nominal prices in local currency.

Across the 44 cities tracked, annual price growth has slowed from the 4.1 per cent seen in Q1 to 2.6 per cent in Q2.

The latest growth rate is well below the long-term average of 5.3 per cent, reflecting the need for lower rates before growth can restart in earnest.

Stockholm is the most improved market for annual growth in Q2 2024.

Liam Baily, global head of research at Knight Frank said the slowing in price growth this quarter across global prime markets reflects the fact that, without further stimulus from rate cuts, the bounce in market pricing seen over the past few quarters is running out of steam. The biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months.”

“After a 124 per cent rise since the beginning of 2020, Dubai can justify a pause for breath. Interestingly, Miami, another significant Covid-era riser with a 77 per cent increase since early 2020, is climbing back up our ranking, with prices up nearly 8.0 per cent over the past 12-month period,” said the report.

In H1 2024, over 74,000 property sales took place in Dubai, totalling Dh191 billion, up 38 per cent year-on-year. Sales volumes also saw substantial growth, with over 74,000 transactions recorded - a 36 per cent annual increase.

Mumbai and New Delhi have recorded an annual increase in their real estate prices at 13 per cent and 10.6 per cent respectively, while Bengaluru has witnessed a modest 3.7 per cent rise.

The premium segment has been the primary driver of sales growth across the Indian market, and this is reflected in the price growth seen during Q2 2024. The increasing affluence of the wealthy and their need for lifestyle-oriented properties has fuelled the prime residential market. We expect this momentum to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant,” said Shishir Baijal, chairman and managing director at Knight Frank India.

Europe has also gained momentum, with six of the ten fastest-improving markets, led by Stockholm. Meanwhile, markets like Madrid, Dubai, and New Zealand (Christchurch, Wellington, and Auckland) are experiencing a slowdown in growth, the report showed.