By 2024, property prices in Dubai will have risen by an average of 20%.
This is according to international consultancy Knight Frank.
According to the company, housing costs will continue to rise. In particular, property prices in Dubai will rise by at least 8% by 2025. At the same time, elite properties will increase in price by around 5%.
Knight Frank noted that those who invested in residential property in Dubai 12 years ago have become millionaires. Properties bought for $95,000 in 2002 can now be sold for more than $1 million. There are at least 530,000 such apartments and houses.
Today, the average cost of a house in Dubai is $1 million. By the way, over the past four years, property has increased significantly in price, - said Faisal Durrani, head of sales in the Middle East Knight Frank.
Demand for property in Dubai continues to grow as the local government's liberal visa policy attracts many foreign buyers. The elite segment of the emirate's property market, including villas on man-made islands, has benefited from the influx of wealthy investors. These include Russians looking to protect their wealth, crypto-millionaires, bankers and wealthy Indians looking for second homes.
Durrani said Dubai has seen sharp ups and downs in the past, but analysts see less risk this time because of regulations that have increased down payments and because most buyers are investing in homes for themselves.
According to a report by Knight Frank, activity in Dubai's real estate market is at record levels, with transaction volumes for the first three quarters of 2024 exceeding total sales for the whole of 2023. The total value of properties sold was Dh116.8 billion ($31.7 billion).
Knight Frank estimates that developers will construct 300,000 new units in Dubai by the end of 2029 to meet growing demand.
The biggest driver for the market is the lack of options to accommodate the growing influx of people coming to the city. The population is growing and there is not enough available supply to accommodate this influx. The biggest gap is now in the villa category where there are hardly any options for sale," Durrani points out.