Residential property market
Dubai's residential property market continues to show strong growth. In the first quarter of 2024, 35,000 homes were sold in Dubai with a total value of AED 88.8bn. These figures are in addition to the record-breaking figures for 2023, when 120,000 transactions worth almost AED 350bn were completed. Despite rising borrowing costs, demand for housing continues to grow.
Opportunities for investors
According to a Knight Frank survey, 54% of individuals with wealth between $5 million and $20 million plan to invest in property in the UAE and Dubai in particular this year. Key motivators for investors include high quality of life, favourable business environment and attractive investment opportunities.
Tourism and hospitality industry
Dubai is also a magnet for international tourists and investors in the hotel industry due to its advanced infrastructure and high degree of security. In 2023, Dubai welcomed 17.2 million tourists, ranking third in the world in terms of arrivals.
Branded Residences
Dubai leads the world in the number of branded residential property operators, offering around 3,000 units. Demand for branded residences remains strong, with 69% of millionaires surveyed (HNWI) expressing a desire to purchase such properties in Dubai. These properties are attracted by their high level of service and quality amenities.
Trends and forecasts
Knight Frank forecasts further growth in housing prices in Dubai, especially in the luxury property segment. Luxury property prices are expected to grow by 5% in 2024, making Dubai the third fastest growing luxury property market in the world after Auckland and Mumbai.
Dubai continues to consolidate its position as one of the world's leading property markets. High standards of living, a favourable business climate and growing demand for luxury property make the city attractive to investors and high net worth individuals from around the world.
