Khaleej Times, Sun, Mar 10, 2024 | Shaban 29, 1445
Dubai: Property prices to increase up to 14% in 2024, says Binghatti CEO
Emirates:
Property prices in Dubai are expected to increase up to 14 per cent this year,
driven by population growth, high demand for mortgages due to an expected drop
in interest rates and more millionaires parking their wealth here, said Muhammad
Binghatti, CEO of Binghatti Holding.
“The market is going to grow steadily and will see price increase between 12 and
14 per cent in 2024, which is a healthy growth. We saw a growth of population of
around 100,000 in 2023 and this year it is expected to grow at a similar rate,
if not more with the new changes and ease in Golden Visa. It seems that interest
rates will head downwards and we are already in a flourishing market, so this
will expedite the growth further,” Binghatti told Khaleej
Times in an interview.
Dubai’s property market rally that started after the Covid-19 pandemic will
continue in 2024 also, but the pace is likely to slow down as the market
matures. Residential property prices reached their peak in 2023 as both
apartments and villas set a new record. The rally is mainly driven by the
ultra-luxury segment on the back of a very strong inflow of high-net-worth
individuals into the Emirates.
“Factors that will drive Dubai’s real estate market in 2024 will be population
growth, rising employment, reduction in interest rates by US Federal Reserve,
more wealth migration to Dubai, more millionaires parking their wealth here and
those rich people want to have a second home here,” Binghatti said during the
interview.
The leading private developer, which recently listed its $300 million (Dh1.1
billion) sukuk on Nasdaq Dubai, has acquired plots worth more than Dh1 billion
for the development before the issuing of the sukuk through its cash flows. The
current land bank is enough for two years, he said.
Binghatti recently tied up with three major brands – Jacob & Co., Bugatti and
Mercedes-Benz – to develop uber-luxury branded residences in Dubai.
“We have exceeded more than 50 per cent in sales of Mercedes-Benz. Bugatti has
been performing very well with 30 units sold since last month despite a starting
price of D20 million. Burj Binghatti Jacob & Co Residences’ sold around 25 units
recently in addition to what we’ve already sold,” he added.