Dubai’s real estate market is poised to experience the highest growth among major global cities in 2024, as outlined in the UBS Global Real Estate Bubble Index released on Tuesday.
The emirate’s score has risen from 0.14 in 2023 to 0.64, elevating its ranking from 23rd to 14th globally. However, analysts warn that an influx of new properties may lead to a slight short-term correction.
Over the past three and a half years, property prices and rents have surged, driven by a population increase of nearly 230,000 since the start of last year. The market, once considered fairly valued, now sits in the moderate bubble risk category due to excessive speculative off-plan transactions and substantial new supply.
The report highlights a significant recovery since a seven-year price correction, with transaction numbers reaching record highs annually. Real housing prices have risen almost 17% in the last year and are currently 40% above 2020 levels. Despite this, UBS cautions that the substantial new supply could trigger a moderate price correction in the near term.
Emirates NBD Research reports that transactions in 2024 have already reached 104,250 units, nearing last year’s total of 118,250 units. Notably, August saw a monthly price growth of 2.48%, the second-highest in the current cycle, attributed to a surge in off-plan project sales.
UBS projects house prices in Dubai to continue growing at over 5% annually in 2024, positioning it alongside cities like Warsaw, Miami, and Amsterdam in the competitive real estate landscape.
News Source: Khaleej Times
