Prices for housing in Dubai are likely to continue to grow next year, predicts Knight Frank. In 2024, they have already increased by 20% and will rise by another 8% next year, according to analysts of the international real estate agency. Luxury properties will rise in price by 5%.
Rising prices in the emirate have already made many millionaires. At least 95,000 of the 530,000 homes sold in Dubai since 2002 are now worth more than $1 million, the report said.
Demand for real estate in Dubai is soaring as government action amid the pandemic and liberal visa policies have attracted many foreign buyers. The high-end segment of the market, including coastal villas on palm-shaped artificial islands, benefited from an influx of wealthy investors. These included Russians seeking to protect their assets, crypto millionaires, bankers fleeing strict restrictions in Asia and wealthy Indians looking for a second home.
Dubai has seen sharp ups and downs in the past, but experts see fewer risks this time around as mortgage payment terms have adjusted and most buyers are end-users.
According to the report, sales for the first three quarters of this year have already surpassed total sales for all of 2023. Sales in Q3 reached a record high of 116.8 billion dirhams ($31.7 billion).
