Dubai’s residential real estate market is on a stable course, and prices are expected to rise slightly in the next couple of years, according to a survey by Reuters analysts, who say that real estate prices will remain affordable at this time.
According to reports from the Land Department of Dubai, the economy has recovered sharply from the pandemic in the city-state after a successful vaccination campaign, which spread to the real estate market with continued sales growth.
According to a survey of 11 analysts conducted by Reuters on August 11-19, housing prices in Dubai will rise by 3.0 percent this year and 2.5 percent in 2022 compared to 1.1 percent and 2.8 percent expected three months ago.
This modest forecast contrasts sharply with other global real estate markets, such as Canada, Australia and New Zealand, where record high house prices were expected to grow in double digits this year, beyond affordability.
“Overall, prices are still about 36 percent below their last peak in 2014, so we’re relatively far from the previous peak,” said Faisal Durrani, head of Middle East research at Knight Frank.
“And recent growth clearly indicates that the market has begun to bottom out in certain niches. In the upper market segment, we are probably seeing a faster recovery than anywhere else. For some real estate, such as apartments, we do not expect such a rapid rise in prices as for villas.
Among analysts who answered an additional question, five out of 11 said that a sharp economic recovery is the biggest risk of growth for the housing market forecast for next year.
Reuters poll on housing affordability in Dubai:
“Immigration reforms, trade liberalization and the master plan for 2040 – all this gives a powerful boost to the Dubai economy. Dubai Expo will also increase economic activity. This inevitably helps to attract more foreign direct investment and indirectly benefits the real estate market as a whole, ”said Anuja Puri, Chairman of ANAROCK Property Consultants.
Source: Reuters