A glimpse into the global property market

After a brutal 18 months marked by rising interest rates, cost-of-living pressures and political instability, the global property market is showing tentative signs of stabilisation. As inflation and interest rates level out over the coming months, experts anticipate a return to a more predictable market. While some volatility persists, the underlying strength of key global cities suggests a more positive outlook for FY25 and beyond.

Dubai

Dubai's property market experienced a record-breaking surge in 2023. Transactions hit unprecedented highs, fuelled by economic reforms and an influx of foreign investors. Prices soared 18 per cent year-on-year, with villas leading the charge, according to Deloitte. Rentals followed suit, increasing by a whopping 26 per cent compared to pre-pandemic levels. This momentum is expected to hold for the remainder of 2024 and into 2025, though a projected influx of new housing might temper the rate of growth. With its ambitious 10-year strategy aiming to double the city's economic output by 2033, the future looks bright for Dubai.

Dubai

London

London’s housing market is bracing for further price dips in 2024, as high interest rates and cost-of-living pressures continue to squeeze buyers. However, hope is on the horizon. The latest data from Statista suggests house prices for mainstream properties could rise by as much as 14 per cent by 2029. This will be driven by an anticipated economic recovery and potentially lower borrowing costs. So, despite the short-term challenges, the longer-term outlook for London’s property market remains optimistic, bolstered by the city’s enduring appeal.

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Shanghai

The housing market in China’s financial hub shows no signs of recovery this year. The slump follows years of instability across the country’s entire property sector, which was once a pillar of the economy. Policymakers are attempting to prop up the market with relaxed regulations and financial support for developers. Earlier this year, in a bid to stimulate proper ty sales, Shanghai eased restrictions that had previously banned unmarried non-residents from buying homes in certain areas. Despite these measures, the city’s housing market remains on a downward trajectory amid persistent low demand, subdued confidence and expectations of
further price declines.

Shanghai

New York

After two years of progressive rate hikes, a Federal Reserve pause and hints of potential cuts could reignite buyer interest and loosen the grip of tight inventory across New York City. However, experts warn looming budget woes and federal election jitters could cool investor enthusiasm in 2024. Despite these headwinds, the Big Apple’s real estate market has a strong track record. This unwavering appeal, coupled with its historical ability to hold value during market fluctuations, suggests the city may once again weather the storm.

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Paris

Encouraging signs are emerging for Paris’s housing market in 2024. Although transaction volumes have not yet rebounded fully from last year’s sharp decline, the first interest rate decrease in two years is expected to entice buyers and buoy the market in the coming months. Experts say the 2024 Olympics could lure more foreign investors to exclusive neighbourhoods across the city, but the precise impact on the market of hosting the games remains uncertain. Nevertheless, Paris’s enduring charm, coupled with a chronic housing shortage, suggests the City of Lights will overcome any uncertainties with characteristic resilience.

Paris
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