Dubai among top cities to see high growth in premium residential properties in 2024
[ad_1]
Dubai remains the most popular prime residential property market, with capital values increasing by 17.4 per cent over the year, with a more modest 5.6 per cent recorded in the second half of 2023, it revealed. Savills Prime Residential World Cities Index.
This performance comes against an average price growth of 2.2 percent across 30 global cities covered by the company. World’s Top Residential Cities Index.
The market (Dubai) is still relatively competitively priced by global standards at $850 per square foot, offers a comparatively low cost of living, a relatively easy visa process and a warmer climate, which continues to attract domestic buyers and international, Savills researchers. he said in the report.
Other Asia Pacific cities led capital value growth in 2023, with Mumbai leading the way.
According to the report, some cities felt the global economic turbulence more than others, particularly in the second half of 2023.
New York and San Francisco, where the former experienced a moderate return to power and the latter still weathered technological turbulence, posted some declines throughout the year.
Hong Kong’s ongoing political and economic uncertainty continued to hamper its major residential markets, with capital values falling 3.7 percent over the year.
Looking ahead to 2024, global city capital values will remain in positive territory, according to the report.
Prime residential price growth is forecast to be a modest 0.6 percent in the 30 global cities monitored, down from the 2.2 percent achieved in 2023.
“Amid ongoing economic uncertainty and a higher interest rate environment, prime residential markets in the world’s cities weakened in 2023 after two years of significant gains. Growth is expected to slow further in 2024 as markets return to more normal conditions, but overall will remain in positive territory.”
saying Kelcie Sellers, Associate, Savills World Research.
Sydney vs. Dubai: Who will be the best?
Sydney and Dubai are forecast to be the two best performing cities next year, with both cities set to benefit from the increase in their high net worth populations.
Sydney is experiencing high levels of demand for premium housing, but supply remains low. This imbalance is likely to persist until 2024 and drive up prices, which are projected to rise by 8 to 9.9 percent.
Dubai rose a significant 17.4 percent over the year, but this growth rate will likely slow this year as it returns to more normal activity.
Savills forecasts prices in the emirate will grow by a further 4 to 5.9 per cent.
The major residential markets of Los Angeles, New York, San Francisco, Seoul, London, Singapore and Hong Kong, which are suffering from weaker sentiment associated with higher interest rates and the challenging economic backdrop, are forecast to see price declines. this year.
Sellers says,
“We hope it will be a year to observe the markets worldwide. Countries representing about 40 percent of the world’s population will go to the polls this year, and housing will likely be a priority for many voters and policymakers alike. “The possibility that central banks will also cut interest rates in mid-to-late 2024 may also boost activity in prime property markets and could surprise higher prices in the latter part of the year.”
Who leads performance and rental performance?
- Dubai also recorded rental price increases over the year, of just under 10 per cent, compared to the 5.1 per cent average recorded among other global cities in the Savills index.
- Lisbon led the growth of prime rentals among the 30 cities in the index, with a 39 percent increase last year.
- In terms of profitability, Dubai stands out as a high-performing city by global city standards, with a profitability of 4.8 percent.
- Across all cities worldwide, prime gross yields stood at 3.1 percent, as global rental markets recorded stronger growth than sales markets.
- The cost of buying, maintaining and selling property in Dubai is also among the lowest, less than 10 percent of the property’s purchase price, compared to 15 percent, on average, in all 30 cities around the world.
News source: Gulf Business
[ad_2]
