The city’s property market rally that started after the Covid-19 pandemic will continue this year
Muhammad Binghatti, the CEO of Binghatti Holding, anticipates a rise in property prices in Dubai by up to 14% this year. This growth is attributed to factors such as population expansion, increased demand for mortgages following an expected decrease in interest rates, and a greater influx of millionaires choosing to invest their wealth in the region.
Binghatti stated in an interview with Khaleej Times, “The market is poised for steady growth, with a projected price increase ranging between 12% and 14% in 2024 – a robust and healthy expansion. With a population growth of approximately 100,000 in 2023, a similar or even greater rate is expected this year, fueled by new changes and the facilitation of the Golden Visa process. As interest rates are likely to decline and considering the current thriving market conditions, this is expected to accelerate the growth even further.”
The upward trend in Dubai’s property market, initiated post the Covid-19 pandemic, is expected to persist in 2024; however, the momentum is likely to decelerate as the market matures. Both apartments and villas reached a pinnacle in residential property prices in 2023, setting new records. The surge is primarily fueled by the ultra-luxury segment, driven by a significant influx of high-net-worth individuals into the Emirates.
In an interview, Binghatti emphasized that the factors propelling Dubai’s real estate market in 2024 include population growth, increasing employment, a reduction in interest rates by the US Federal Reserve, a greater migration of wealth to Dubai, more millionaires choosing to invest in the region, and affluent individuals seeking a second home in Dubai.
As the leading private developer, Binghatti, which recently listed its $300 million (Dh1.1 billion) sukuk on Nasdaq Dubai, has acquired plots worth over Dh1 billion for development even before the sukuk issuance, using its cash flows. He mentioned that the current land bank is sufficient for the next two years.
Binghatti has recently formed partnerships with three major brands – Jacob & Co., Bugatti, and Mercedes-Benz – to create high-end branded residences in Dubai.
In terms of sales, Binghatti reported exceeding 50 per cent in Mercedes-Benz units, with Bugatti performing exceptionally well and selling 30 units since last month, despite a starting price of D20 million. Additionally, Burj Binghatti Jacob & Co Residences recently sold around 25 units, in addition to previous sales.
