London property market to face more challenges, sluggish growth in the coming year, says latest AI-based research
An artificial intelligence (AI)-propelled analysis on property markets in major cities around the world has predicted a close to 15 percent growth in Dubai real estate market in 2024, while a persistent downturn in the London property market in the coming year.
The study predicted Dubai’s real estate market to stand as a beacon of growth for the year 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
The London property market, on the other hand, is being adversely affected by several factors, including skyrocketing fuel and energy costs, mounting inflation, and tax hikes, it said.
“These economic factors have significantly reduced households’ discretionary income, making it more difficult for them to invest in real estate,” the study revealed.
The predictions about a further fall in London’s famed real estate market comes after the recent International Monetary Fund (IMF) downgrade in the 2023 economic growth forecast for the UK to a modest 0.4 percent from its April estimate of 0.7 percent.
“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.
Commenting on the study projecting Dubai to emerge as a major growth hub in 2024 in the real estate sector globally, Alex Galt, founder and CEO of Realiste, said this is mainly on account of the fact that people understand the value and quality present in Dubai – as also in the larger UAE area – in terms of safety, cleanliness, tourism, and more.
“The prospects [in Dubai] are much greater than in any other city in the world,” Galt told Arabian Business.
The Realiste study covered 51 cities worldwide in major countries including the US, the UK, the UAE, France, Germany and Austria.
The company put its patented AI to work to forecast market trends and shifts in these cities.
Pockets of growth in Dubai
Realiste’s AI-based analysis pinpointed specific pockets within Dubai that could witness a pronounced cost escalation, potentially surpassing the 15 percent benchmark 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.
Though the company has not revealed the names of these areas, Business Bay Second and Palm Jumeirah are learnt to be among the Dubai pockets which are expected to see a higher demand and price rise in the coming year.
Industry experts said the study insights could provide valuable guidance to stakeholders, investors, and industry players, equipping them with a deeper understanding of the evolving real estate dynamics around the world.
“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 said its AI-based forecasts and estimations have an average success rate of 96 percent.
