Dubai's property market is set for the highest growth among major global cities in 2024. The UBS Global Real Estate Bubble Index shows Dubai’s score rising from 0.14 in 2023 to 0.64, improving its rank from 23rd to 14th. Prices and rents in Dubai have been steadily increasing for over three years fuelled by a population rise of nearly 230,000 since early last year. However, this consistent price rise has led some analysts to warn of a potential short-term correction due to high new supply.

Dubai's housing market was previously considered fairly valued but has now moved into the moderate bubble risk category. Following seven years of price corrections, transaction numbers have reached record highs with real housing prices up nearly 17% and are 40% higher than in 2020. Analysts suggest that a high proportion of speculative off-plan transactions could contribute to a moderate price adjustment soon.

In comparison, cities like Amsterdam, Sydney and Boston face only moderate risk. Alongside Dubai cities including Vancouver and Singapore are also categorized as having moderate bubble risk.

Emirates NBD Research reports that 2024 has seen around 104,250 property transactions in Dubai only 14,000 units short of the total for all of 2023, driven by significant off-plan project launches. House prices in Dubai are projected to grow by over 5% annually in 2024, outpacing many other global cities. Property Monitor noted a recent surge in property prices with a monthly gain of 2.48% in August which is more than double the previous month’s growth.

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