(MENAFN- Khaleej Times) 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.

Muhammad BinGhatti, CEO of Binghatti

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.

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“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.

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