Dubai Property Prices Surge: A 124% Increase Since 2020
Since 2020, property prices in Dubai have jumped by 124%, but recent data shows that the pace is starting to slow down a bit. According to a report by an international property consultancy, the growth rate in the real estate market slowed down from 15.9% in the first quarter of the year to a slight decline of 0.3% in the second quarter.
Manila has really made a splash globally, coming in at the top of Knight Frank’s Prime Global Cities Index with a whopping 26 per cent increase. The index tracks how prime residential prices are moving in 44 cities around the globe based on valuation data. The index keeps an eye on the nominal prices in the local currency.
Analysis of the Market and Prospects
Right now, the growth rate is falling short of the long-term average of 5.3%, which suggests that lower interest rates might be needed to keep things growing steadily. Stockholm really stepped up its annual growth during the second quarter of 2024.
Liam Baily, who leads research at Knight Frank, mentioned that the slowdown in price growth across global prime markets suggests that the recent spike in market prices is starting to lose steam. He pointed out that how prices will grow in the future really hinges on what central banks decide to do about interest rate cuts in the coming year.
Dubai and Miami’s Market Dynamics
Dubai’s property prices, which have jumped an impressive 124% since 2020, seem to have hit a bit of a pause for now. Miami, a city that really took off during the pandemic, has proven to be resilient, with property prices jumping by 8% in the last year.
In the first half of 2024, Dubai saw more than 74,000 property sales, totalling Dh191 billion, a 38% increase from the previous year. Sales volumes went up by 36%, totalling more than 74,000 transactions.
Indian Real Estate Market
Mumbai and New Delhi have seen their real estate prices increase by 13 per cent and 10.6 per cent each year, respectively, while Bengaluru has experienced a more modest increase of 3.7 per cent.
The premium segment has really driven sales growth in the Indian market, as evidenced by the price increases we noticed during Q2 2024. The growing wealth of the rich and their desire for lifestyle-focused homes have boosted the prime residential market. “We think this momentum will carry on into 2024, especially since the economic outlook looks strong and keeps spirits high,” shared Shishir Baijal, chairman and managing director at Knight Frank India.
European Market Trends
Europe is really picking up speed, with six out of the ten fastest-improving markets, and Stockholm is leading the pack. On the flip side, places like Madrid, Dubai, and New Zealand—specifically Christchurch, Wellington, and Auckland—are seeing a bit of a slowdown in their growth, according to the report.
