House prices in Dubai are likely to continue to rise next year, Knight Frank predicts. In 2024, they have already increased by 20% and will rise by another 8% next year, according to analysts at the international real estate agency. Luxury properties will rise in price by 5%.
Rising prices in the emirate have already made many millionaires.At least 95,000 of the 530,000 homes sold in Dubai since 2002 are now worth more than $1 million, the report says.
The demand for real estate in Dubai is growing rapidly, as the government's actions in the context of the pandemic and the liberal visa policy have attracted many foreign buyers.The elite segment of the market, including coastal villas on artificial palm-shaped islands, has benefited from the influx of wealthy investors.Among them were Russians seeking to protect their assets, cryptomillionaires, bankers fleeing strict restrictions in Asia, and wealthy Indians looking for a second home.
In the past, there have been sharp ups and downs in Dubai, but this time experts see fewer risks, since the terms of mortgage payments are regulated, and most buyers are end users.
According to the report, sales for the first three quarters of this year have already exceeded total sales for the whole of 2023.Sales in the 3rd quarter reached a record high of 116.8 billion dirhams ($31.7 billion).
Knight Frank estimates that by the end of 2029, developers seeking to capitalize on the growing demand will have built 300,000 housing units.
The population of the emirate is growing, and there is not enough housing to accommodate people. There is a particular shortage of supply in the villa market.
Source: Bloomberg
