Dubai led 30 global cities in rental value growth in H1 2024, according to Savills’ latest Residential World Cities Index.
The report also placed Dubai 5th globally for capital value growth in the same period.
Dubai topped the rental value index with a 12.1 percent increase, followed by Bangkok (9 percent) and Lisbon (7.5 percent).
“These markets have strong lifestyle appeal and corporate relocations driving demand,” stated Savills research.
Prime real estate rents in Dubai have risen for years, boosted by pro-business policies and attractive visa programmes, drawing people worldwide to establish a base in the emirate.
Andrew Cummings, Head of Residential Agency at Savills Middle East, noted Dubai’s residential market continued its impressive performance in H1 2024, with record-breaking transaction volumes and values.
“We are seeing leading brands and developers launching world-class projects in Dubai and the wider UAE to meet growing demand,” he said.
Cummings added that with tight existing supply, prime rentals are not expected to decrease soon.
Dubai and Lisbon lead prime rental growth
Kelcie Sellers, Associate Director of Savills World Research, stated that Dubai and Lisbon consistently lead prime rental market growth due to high demand for quality rental properties, with Bangkok as a new entrant.
In many EMEA markets, demand exceeds the supply of prime rental properties, supporting rental price growth across the region, the report highlighted.
No EMEA market tracked in the index saw rental prices decline from December 2023 to June 2024.
In a high-interest-rate environment, rents outperformed capital values, growing by 2.2 percent in H1 2024, with 25 out of 30 markets reporting stable or positive rental growth, Savills noted.
Prime residential property remains resilient
Prime residential property in world cities remained resilient in H1 2024, recording an average capital value growth of 0.8 percent, surpassing the 0.6 percent forecast for 2024 overall.
However, buyers remain cautious, awaiting interest rate clarity.
“On a price per square foot basis, Dubai offers excellent value to investors and end-users seeking high-quality, luxurious homes with attractive amenities. Combined with its lifestyle and connectivity, Dubai remains one of the world’s most sought-after living destinations,” said Cummings.
Savills noted that only two of the 13 EMEA markets experienced negative capital value growth in H1 2024, with Berlin and London seeing slight declines of -0.8 percent and -0.1 percent, respectively.
