Dubai real estate achieves the highest real estate growth among global cities in 2024

 A recent report issued by UBS Bank predicted that the real estate market in Dubai will witness the highest growth rate among major cities worldwide during 2024.

According to the 2024 Global Real Estate Bubble Index report, and despite the significant rise in property prices, the bank does not expect a corrective bubble to occur in Dubai's real estate market.

The report indicated that the increase in new real estate supply may lead to a slight price correction in the short term.

The report showed that Dubai's rating rose from 0.14 points in 2023 to 0.64 points this year, and the emirate's ranking in the index jumped from 23rd to 14th place during the same period.

This comes amid continued increases in property prices and rents in Dubai over the past three and a half years, driven by a significant population increase of about 230,000 people since the beginning of last year.

This ongoing price rise has led some analysts to warn of the possibility of a slight correction in the real estate market in the short term.

Last year, Dubai's real estate market was classified as "fairly valued," but this year the rating has risen to the category of "moderate bubble risk."

The report pointed out that after a seven-year price correction, bubble risk signals were low in Dubai during 2020. Since then, real estate transaction numbers have reached new record levels every year, and the surplus in real estate supply has been absorbed.

In the past four quarters, property prices have increased by about 17%, and are now 40% higher than they were in 2020.

Despite the significant rise in property prices, rental yields remain attractive, ranging between 6% and 7%. This is due to a 60% increase in actual rents, which has helped maintain rental yields at relatively high levels compared to other global cities covered in the report.

Edited by: Imtilak Global©