After a 124 percent surge since 2020, Dubai experienced a slight moderation in real estate price growth, slowing from a 15.9 percent increase in the first quarter to a 0.3 percent decline in the second quarter, according to an international property consultancy.
Globally, Manila has led Knight Frank’s Prime Global Cities Index, recording a 26 percent increase. This index tracks the movement of prime residential prices across 44 cities worldwide, based on valuation data in local currency.
Among the 44 cities monitored, annual price growth has decelerated from 4.1 percent in Q1 to 2.6 percent in Q2.
The current growth rate is significantly below the long-term average of 5.3 percent, indicating a need for lower rates before substantial growth can resume.
Stockholm showed the most improvement in annual growth during Q2 2024.
Liam Bailey, global head of research at Knight Frank, noted that the deceleration in price growth this quarter across global prime markets reflects the fact that, without additional stimulus from rate cuts, the market pricing rebound observed in recent quarters is losing momentum. The biggest factor influencing future price growth lies with central banks and their willingness to cut rates further in the next 12 months.
“After a 124 percent increase since early 2020, Dubai can justify a pause. Interestingly, Miami, another major Covid-era performer with a 77 percent rise since early 2020, is climbing back up our rankings, with prices increasing nearly 8.0 percent over the past year,” the report stated.
In H1 2024, Dubai saw over 74,000 property sales, totaling Dh191 billion, representing a 38 percent year-on-year increase. Sales volumes also grew significantly, with over 74,000 transactions recorded—a 36 percent annual rise.
Mumbai and New Delhi have recorded annual real estate price increases of 13 percent and 10.6 percent, respectively, while Bengaluru has seen a modest 3.7 percent rise.
The premium segment has been the primary driver of sales growth in the Indian market, as reflected in the price increases during Q2 2024. The growing wealth of the affluent and their demand for lifestyle-oriented properties have fueled the prime residential market. This momentum is expected to continue in 2024, as the economic outlook remains strong, keeping sentiments positive,” said Shishir Baijal, chairman and managing director at Knight Frank India.
Europe has also gained traction, with six of the ten fastest-improving markets, led by Stockholm. However, markets like Madrid, Dubai, and New Zealand (Christchurch, Wellington, and Auckland) are experiencing a slowdown in growth, according to the report.
