Dubai has cemented its position as a global real estate powerhouse, topping the Savills World Cities Index for rental value growth in the first half of 2024. With a 12.1% increase in rental prices, Dubai outshone competitors like Bangkok and Lisbon to claim the top spot.

The city’s allure as a lifestyle destination and an influx of corporate relocations have fueled demand for prime residential properties. This surge has propelled Dubai to the fifth position globally for capital value growth during the same period.

Savills attributed Dubai’s performance to many factors, including pro-business policies, attractive visa programs, and a thriving economy. The limited supply of high-end rental properties has further driven up rental prices.

The report noted that prime residential properties in major global cities remained robust during the first half of 2024, showing an average capital value growth of 0.8%, surpassing the forecasted 0.6% growth for the year.

Nevertheless, the report noted that buyers remain cautious as they seek clarity on interest rates.

Andrew Cummings, Head of Residential Agency at Savills Middle East, said: “On a price per sq ft basis, Dubai continues to offer immense value to investors and end-users looking for high-quality, luxurious homes with attractive amenities.” “Coupled with the lifestyle and connectivity that the emirate has to offer, Dubai continues to be one of the most coveted destinations in the world to live in,” he added.

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