Knight Frank – Dubai Residential Market Review, Summer 2024

In the Dubai Residential Market Review for Summer 2024 by Knight Frank, it is highlighted that residential values in Dubai have increased by 21.3% over the last 12 months and by 5.3% in the last three months, surpassing the 2014 peak by 6.4%. The prices of apartments have risen by 6% in Q2, now 20.7% higher than last year and 3.2% above the 2014 peak. Villas continue to outperform apartments, with values increasing by 6.7% in Q2, bringing them 24.3% higher than last year and 28% above the 2014 peak. The report also notes an 18% increase in launched and under-construction supply, with 308,099 units expected to be completed by 2029, mostly in the apartment sector. However, there is a potential shortfall in meeting the city's housing demand, with delays in supply and an estimated need for 73,000 homes per year until 2040. Prime residential values in key neighborhoods have risen by 7% in H1 2024, with a significant decrease in homes available for sale reflecting a shift towards a 'buy-to-stay' and 'buy-to-hold' mentality. Additionally, Dubai has emerged as the leading global luxury homes market with 190 homes over US$10 million sold in H1, surpassing New York and Miami.