Dubai’s Real Estate Market Stabilizes as Global Prime Residential Growth Slows
Dubai’s property market has experienced an extraordinary surge, with prices skyrocketing by 124% since 2020. However, recent data from an international property consultancy shows a slight deceleration, with growth slowing from 15.9% in Q1 2024 to a 0.3% decline in Q2. Despite this, Dubai remains a key player in global real estate, recording over 74,000 property sales totaling Dh191 billion in the first half of 2024, a 38% increase year-on-year.
Globally, Manila has emerged as the leader in the Knight Frank’s Prime Global Cities Index, with a 26% increase in prime residential prices. This index, tracking the movement of prime residential prices across 44 cities worldwide, also highlights a general slowdown in growth, from 4.1% in Q1 to 2.6% in Q2. The overall global growth rate is now below the long-term average of 5.3%, signaling a need for further rate cuts to spur future growth.
In the Indian market, cities like Mumbai and New Delhi saw significant annual price increases of 13% and 10.6%, respectively, driven largely by the premium segment. Meanwhile, Europe saw momentum with six of the ten fastest-improving markets, led by Stockholm. Conversely, markets such as Madrid, Dubai, and New Zealand’s major cities are experiencing a slowdown.
Liam Bailey, Global Head of Research at Knight Frank, noted that the global slowdown in price growth reflects the need for central banks to cut rates further to reignite market momentum. In Dubai, the report suggests that after a significant rise, the market is now taking a pause, mirroring trends seen in other global hotspots like Miami.
The report underscores that while Dubai’s market is stabilizing, it remains a critical hub in the global real estate landscape, with significant growth in sales volumes and continued interest from international investors. As economic conditions evolve, the coming months will be crucial in determining whether this stabilization represents a temporary lull or a new phase of sustained growth.
