It is Cheaper to Buy and Sell a $2 Million Property in Dubai than in London, Mumbai, Paris, and More: In 2023, Dubai’s luxury residential real estate market outperformed other cities worldwide in terms of growth, and in 2024, it is expected to maintain this remarkable performance. Dubai is predicted to fare better than almost all big cities worldwide as long as its market remains competitive.

“Dubai has been a global leader in the appreciation of capital values in recent years, with prices expected to rise by 17.4% in 2023. But as the market normalizes, we expect this growth rate to decrease down in 2024, to between 4% to 5.9%,” said Jelena Cvjetkovic, director of Savills, a renowned international residential real estate consultant.

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Even if growth is slowing down, Dubai is expected to gain from an influx of high-net-worth individuals and become the second-fastest expanding market in 2024, right behind Sydney.

The 17.4% capital value gain in 2023 was more than seven percentage points more than that of the second-ranked market, even though growth slowed to 5.6% in the second half of the year.

Major cities including Mumbai, Bangkok, Tokyo, Sydney, Shanghai, Madrid, Barcelona, Geneva, and Singapore saw slower capital value appreciation in 2023 than Dubai did.

With an estimated 9,500 millionaires having relocated to Dubai during the previous two years, the emirate continues to draw wealthy people, which is driving up demand for luxury real estate.

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Competitive Prices in Dubai

According to Savills, Sydney’s premier real estate market is expected to rise at the fastest rate in the world in 2024, growing by 8% to 9.9%. Dubai’s prime real estate market is expected to increase at a rate of 4% to 5.9%.

The forthcoming election year of 2024 introduces an element of uncertainty to the world economy. On the other hand, the real estate industry is anticipated to benefit greatly from the political and economic stability of Dubai and the United Arab Emirates throughout this time.

At an average price of $850 per square foot, Dubai’s premium market is still competitively priced on a global scale, according to Savills. Both domestic and foreign purchasers are drawn to the area by its pleasant weather, simple visa requirements, and affordable cost of living.

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After Lisbon, Berlin, and Singapore, Dubai was one of the top four cities in the world for rise in prime residential rental values. Dubai has higher rental costs than big cities like New York, Hong Kong, Los Angeles, Singapore, Paris, Geneva, and Amsterdam, but still has lower rental costs than Bangkok, Mumbai, Sydney, Madrid, Kuala Lumpur, Beijing, and Barcelona.

By international standards, Dubai is a high-yielding city with yields of 4.8%. Prime rates have tightened by 40 basis points in the last year, while capital values have increased by 17.4% and rents by 8.9%. Since capital value growth is predicted to continue exceeding rent increases, we expect further tightening of Dubai’s yields, Cvjetkovic continued.