In the 2024 Forecast: Dubai Emerges as the Leading Global Real Estate Market for Luxury Homes
Dubai continues to solidify its status as a global real estate powerhouse, with the latest projections indicating a bright future for luxury property investments in the city. According to a recent report by Savills, Dubai, alongside Sydney, is anticipated to experience the most significant increases in prime residential property values throughout 2024, reaffirming its position as one of the world’s premier luxury housing markets.
The annual Prime Global Cities Index meticulously tracks changes in the capital values of upscale residences across thirty major global cities. In 2023, Dubai soared to the top of the list with an impressive appreciation rate of 17.4%. As we look ahead to 2024, both Dubai and Sydney are expected to outperform other global locations, with value increases projected to range from 4 to 9.9 percent.
Sydney’s exceptional gains are attributed to historically low inventory levels and sustained demand from high-net-worth individuals. However, the scarcity of luxury listings is anticipated to continue exerting upward pressure on prices in the upcoming year.
Dubai’s real estate prowess is underpinned by its maturity as a global city, boasting world-class infrastructure, unparalleled safety, stability, and a diverse range of property offerings. Andrew Cummings, Head of Residential Agency for Savills Middle East, highlights these factors as key drivers sustaining international interest in Dubai’s property market.
While Dubai’s growth rate is expected to moderate as activity returns to a more normal pace, gains of 4 to 5.9 percent are anticipated, securing its position among the top two prime residential markets globally.
Looking beyond Dubai and Sydney, Savills’ Index predicts a moderate increase in residential values across the thirty cities observed, with most cities projected to experience gains ranging from zero to 3.9 percent. Mumbai and Cape Town join Dubai as standout performers, with continued growth expected in 2024.
Conversely, major American housing centers face pressure from rising interest rates and economic uncertainty. Asian markets, such as Hong Kong, may also see declines due to geopolitical challenges and policy impacts.
Despite short-term volatility, long-term property appreciation across established and emerging global hubs remains supported by urbanization, wealth creation, and evolving consumer preferences. Forecasts indicate a positive trajectory for luxury real estate values, with Sydney and Dubai leading the charge in 2024.
