In 2024, the real estate market in Dubai is expected to expand by about 15%, according to artificial intelligence (AI)-driven research of property markets in key cities worldwide, while the London real estate market is expected to continue to decline.
According to the study, Dubai’s real estate industry will be a shining example of growth in 2024.
“Fuelled by resilient demand, a buoyant economy, and robust foreign investor interest, the [Gulf] city’s real estate landscape is projected to experience a remarkable upswing [in the coming year],” the latest study by Realiste, an AI-based prop-tech specializing in real estate investment solutions, said.
UAE shines while London’s charm to further dim in 2024
On the other side, the report stated that a number of issues, such as soaring fuel and energy prices, rising inflation, and tax increases, are having a negative impact on the London real estate market.
“These economic factors have significantly reduced households’ discretionary income, making it more difficult for them to invest in real estate,” the study revealed.
The International Monetary Fund (IMF) recently revised its estimate of the UK’s economic growth for 2023 downward from its April estimate of 0.7 percent to a weak 0.4 percent. This has led to predictions of a further decline in London’s renowned real estate market.
“Growth in the United Kingdom is projected to decline from 4.1 percent in 2022 to 0.4 percent in 2023, then to rise to 1.0 percent in 2024,” IMF said in its latest review report.
Alex Galt, founder and CEO of Realiste, commented on the study that predicted Dubai would become a significant growth hub in the global real estate sector in 2024. He said this was primarily due to the fact that people understood the value and quality present in Dubai – as well as in the larger UAE area – in terms of safety, cleanliness, tourism, and other areas.
“The prospects [in Dubai] are much greater than in any other city in the world,” Galt told Arabian Business.
51 cities from 51 major nations, including the US, UK, UAE, France, Germany, and Austria, were included in the Realiste study.
In order to predict market trends and shifts in these cities, the business used its own AI.
Pockets of growth in Dubai
Realiste’s AI-based study identified several areas in Dubai that would experience substantial price increases, possibly going above the 15 percent threshold in 2024.
“This phenomenon promises to amplify the appeal of real estate investments in these localized regions, thereby marginally detracting from the allure of alternative areas and global economic hubs,” Realiste said.
Business Bay Second and Palm Jumeirah are reportedly among the Dubai neighborhoods that are anticipated to have increased demand and price growth in the upcoming year, despite the firm not disclosing the names of these places.
According to specialists in the field, the study’s findings could offer stakeholders, investors, and other industry participants helpful advice and give them a clearer understanding of the dynamics of the global real estate market as it changes.
“As global markets continue to evolve, these forecasts can act as indispensable tools providing enhanced foresight, and thus enable stakeholders to get a better understanding about future prospects of real estate investments,” a Mumbai-based industry analyst said.
Realiste claimed that 96 percent of their AI-based forecasts and estimations are successful on average.
News Courtesy: Arabian Business