A recent report by global real estate firm Savills unveils Dubai and Sydney as the frontrunners in the anticipated growth of prime residential property values in 2024. Both cities are set to maintain their momentum as top-performing luxury housing markets, according to the firm's annual Prime Global Cities Index, which tracks capital value changes in premium homes across 30 major cities worldwide.
In 2023, Dubai clinched the top spot with a remarkable 17.4 percent appreciation in prime residential property values. The forecast for 2024 suggests that both Dubai and Sydney will outpace other global locales, with projected value increases ranging between 4 and 9.9 percent.
Sydney's surge is attributed to historically low inventory levels coupled with steady demand from high-net-worth buyers, fueling 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 showcased the most robust global performance in 2023, its growth rate is expected to slightly moderate as activity returns to a more typical pace. Nonetheless, 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 locales may experience minor declines.
Sydney, which recorded a significant 6.8 percent growth in 2023, remains undersupplied, positioning it well for further appreciation. With housing affordability concerns, upcoming elections could intensify policy focus on increasing stock to moderate cost increases, with Savills estimating values climbing to almost 10 percent this year.
Mumbai and Cape Town, joining Dubai as cities exceeding 3 percent growth over the past 12 months, are anticipated to maintain momentum with increases of 2 and 3.9 percent, respectively, in 2024.
