Dubai leads price growth in global prime residential market with gains of 11.2% in 2023

Dubai leads price growth in global prime residential market with gains of 11.2% in 2023

Dubai led the price growth in the global prime residential market, recording gains of 11.2% in the first half of 2023.

According to findings of the Prime Residential World Cities Index, released by real estate services provider Savills, the emirate emerged as the leader in average capital values during H1 2023 across 30 cities, ahead of Mumbai, Cape Town and Bangkok.

The forecast for the second half of 2023 also places the emirate on top of the leader board for growth, with between 6-7.9% expected.

“Dubai continues to perform exceptionally well in H1 2023 and is poised for growth for the rest of the year - a total of 1,500 units priced above AED 4,000 per sq.ft. were transacted across the city, a growth of 67% compared to H1 2023,” said Swapnil Pillai, associate director, Middle East Research at Savills.

According to the findings, the average capital values during the first half of 2023 in the 30 cities tracked grew by an average of 1.1% while in the second half of 2022, 0.8% growth was recorded.

Annual growth of 1.9% to June 2023 was the slowest since December 2020. Meanwhile, average prime residential rents grew by 2.6%, outperforming capital values.

“The slowdown in sales markets recorded