Dubai: Here’s why property prices will continue to rise in 2024
Rise in foreign fund inflows fuels surge in the rally along with tenants turning into property ownership, availability of ready-to-move-in properties, among others
Property prices rally in Dubai will continue next year, but the pace will slow down compared to 2023, with a growth rate of up to 10 per cent projected on the back of strong demand from residents, investors and high-net-worth individuals.
Analysts expect that the prime residential market will continue to drive the market, led by Jumeirah, Downtown, Palm Jumeirah and other high-end areas that have witnessed unprecedented demand in the post-pandemic period.
The surge in the rally is fuelled by a combination of factors, including a rise in foreign fund inflows, tenants transitioning into property ownership, a growing availability of ready-to-move-in properties, and the interest of investors seeking to capitalize on long-term residency programs like the Golden Visa, Retirement Visa, and Freelance Visa.
“With sustained demand and positive market sentiment, we foresee prices to continue witnessing steady increases in the range of 5-10 per cent over 2024 – albeit with the pace expected to slow down compared to the 20-25 per cent price increases witnessed in 2023,” says Prathyusha Gurrapu, head of research and consulting at Cushman & Wakefield Core.
