The city of Dubai is poised to maintain its status as a prominent global real estate market with substantial potential for luxury home growth in 2024, as indicated by the latest forecast. Alongside Sydney, Dubai is anticipated to exhibit the most robust expansion in prime residential property values throughout the year, sustaining their positions as top-performing luxury housing markets, according to a comprehensive report by Savills, a renowned global real estate firm.
Savills’ annual Prime Global Cities Index meticulously monitors capital value fluctuations in premium homes across 30 major cities worldwide. Having claimed the top spot in 2023 with an impressive 17.4 percent appreciation, Dubai is expected to experience a slightly moderated growth rate in 2024, ranging between 4 and 5.9 percent. This would, nonetheless, solidify the emirate’s standing among the top two prime residential markets globally.
The report emphasizes that Dubai’s continued success is rooted in its maturity as a truly global city, characterized by world-class infrastructure and an unparalleled quality of life. Andrew Cummings, Head of Residential Agency for Savills Middle East, attributes Dubai’s attractiveness to international buyers to factors such as safety, stability, and a diverse range of property offerings.
Sydney, which recorded a notable 6.8 percent growth in 2023, is projected to witness further appreciation in 2024. The city’s undersupply of housing, coupled with sustained demand from high-net-worth buyers, is driving above-average gains. Savills predicts a substantial increase of almost 10 percent in property values for Sydney this year. However, challenges related to housing affordability may prompt policy interventions, particularly with upcoming elections.
Mumbai and Cape Town, alongside Dubai, stand out as the only cities exceeding 3 percent growth over the past 12 months. The Indian and South African markets are expected to maintain their momentum with increases of 2 and 3.9 percent, respectively, in 2024.
While Savills anticipates ongoing urbanization, wealth creation, and evolving consumer preferences to underpin long-term property appreciation globally, some regions may face challenges. Major American housing centers could experience pressure due to economic uncertainty, higher interest rates, and weakening consumer sentiment. Similarly, certain Asian markets, including Hong Kong, Shenzhen, and Guangzhou, may face declines attributed to a risk-averse investment environment and geopolitical factors.
In conclusion, despite short-term volatility, Savills projects a modest overall increase in property values across established and emerging global hubs. Dubai and Sydney are expected to lead the gains in the luxury sector, affirming their positions as key players in the global real estate landscape.
Publish Feb 14, 2024
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-ranks-as-leading-global-real-estate-market-for-luxury-home-growth-potential-in-2024-forecast
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