Page 132 - SOBHA REALTY PR REPORT - DECEMBER 2024

Dubai home prices are likely to climb further next year after already
surging 20% in 2024, marking an extension of the unabated

recovery that started after the pandemic, Knight Frank said.

For the overall market, residential values are set to rise 8% next

year while they will rise 5% on average for luxury properties, the

broker said in a new report.

Already the emirate’s price surge has minted 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 estimated.

Residential skyscrapers in the Dubai Marina district.Photographer: Natalie
Naccache/Bloomberg

“These days a million dollar home is really the average price of a

single-family home, which highlights how much values have
increased in the past four and half years,” said Faisal Durrani, head

of Middle East research at Knight Frank.

Demand for Dubai property is booming as the government’s

handling of the pandemic and its liberal visa policies attracted

scores of foreign buyers. The luxury end of the emirate’s real-estate

market — including waterfront villas on the city’s man-made palm-

shaped islands — has benefitted from an influx of wealthy investors.
Among them have been Russians seeking to shield their assets,

crypto millionaires, bankers fleeing strict Covid restrictions in Asia

and rich Indians seeking second homes.

Dubai has had dramatic boom bust cycles in the past, but analysts

see fewer risks this time due to rules that boosted down payments

and because most buyers are end users, Durrani said.

https://www.bloomberg.com/news/articles/2024-12-03/dubai-home-prices-set-to-surge-again-in-
2025-knight-frank-says