In 2024, Dubai is expected to lead global luxury home growth.
The latest report by global real estate firm Savills reveals that Dubai and Sydney are expected to lead the growth of prime residential property values in 2024. Both cities are projected to maintain their status as top-performing luxury housing markets, as indicated by the firm's annual Prime Global Cities Index, which monitors changes in the capital values of high-end homes in 30 major cities worldwide.
In 2023, Dubai secured the top spot with a remarkable 17.4 percent increase in prime residential property values. The forecast for 2024 suggests that both Dubai and Sydney will outpace other global cities, with projected value increases ranging between 4 and 9.9 percent.
Sydney's surge is attributed to historically low inventory levels combined with steady demand from high-net-worth buyers, resulting in above-average gains. Luxury listings have struggled to keep pace with demand, creating upward pressure on prices that Savills predicts will persist through the upcoming year.
While Dubai demonstrated the most robust global performance in 2023, its growth rate is expected to slightly moderate as activity returns to a more typical pace. Nevertheless, anticipated gains of 4 to 5.9 percent would secure the emirate's position among the top two prime residential markets.
According to Andrew Cummings, Head of Residential Agency for Savills Middle East, Dubai's sustained success can be attributed to its maturity as a global city, boasting world-class infrastructure, safety, stability, and a diverse range of property offerings that continue to attract international buyers.
Looking ahead, the Index forecasts an overall upward trend in residential values for 2024, albeit at a slower pace than the previous year's 2.2 percent average rise. While most cities are expected to register gains between 0 and 3.9 percent, seven locations may experience minor declines.
Sydney, which saw significant growth of 6.8 percent in 2023, continues to be undersupplied, positioning it for further appreciation. With concerns about housing affordability, upcoming elections could intensify the policy focus on increasing stock to moderate cost increases, with Savills estimating values to climb by almost 10 percent this year.
Mumbai and Cape Town, along with Dubai, experienced growth exceeding 3 percent over the past 12 months and are anticipated to maintain momentum with increases of 2 and 3.9 percent, respectively, in 2024.