Dubai Tops Global Rental Value Growth in H1 2024: Savills
This surpasses the 9% rise in Bangkok and the 7.5% increase in Lisbon.
Dubai ranked first globally in prime residential rental value growth in the first half of 2024, with a 12.1% increase, according to Savills' latest Prime Residential World Cities Index. This surpasses the 9% rise in Bangkok and the 7.5% increase in Lisbon.[1]
Additionally, Dubai ranked fifth in the world for capital value growth, achieving a 2.9% increase in the first six months of the year. This outperformed the 0.6% average capital value growth predicted for 30 world cities for 2024. The report highlights "relative confidence in the asset class," with prime gross yields in Dubai exceeding 5%, placing it among the highest-yielding cities alongside New York and Los Angeles.
This growth is attributed to Dubai's pro-business government policies, residence visa programs, and lifestyle credentials. Corporate relocations have also contributed, with brands and developers launching projects in Dubai and the UAE to meet the growing demand, according to Andrew Cummings, head of Savills Middle East residential agency.
Cummings added that with existing supply running tight, prime rentals are not expected to cool off anytime soon.
Dubai's property market saw a 45% year-on-year (YoY) leap in transactions in the second quarter (Q2) of 2024, reaching over 43,000 transactions, according to Property Finder’s Market Digest.
This performance surpassed the transaction volumes of the first quarter (Q1) of 2024, which had a 17% YoY increase in volume and a 2% surge in value.
The UAE advanced three spots to rank 7th globally in the 2024 World Competitiveness Report by the International Institute for Management Development (IMD) in Switzerland.
In another recent report, the 2024 Cost of Living City Ranking, by US-based consulting firm Mercer, Dubai has been named the most expensive city in the Middle East for international employees, driven by soaring rents and insurance premiums.