Expected house prices to rise in Dubai over the next two years
Poll: Dubai's economy rebounded after a "successful" vaccination campaign
Expectations of an increase in the activity of the housing market in Dubai during the next year.
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A survey of real estate analysts' opinions showed that the residential real estate market in Dubai is on a steady path and that prices are expected to rise during the next two years, but they expected real estate prices to remain affordable for everyone during that period.
After the repercussions of the Corona virus pandemic, the economy rebounded significantly in Dubai after a successful vaccination campaign, and this extended to the real estate market, which witnessed a continuous increase in sales, according to the records of the Dubai Land Department.
Dubai house prices were expected to rise 3% this year and 2.5% in 2022, compared to expectations of an increase of 1.1% and 2.8% three months ago, according to a Reuters survey of 11 analysts from August 11 to 19. .
“Overall prices are still lower than the last peak in 2014. In the higher segment of the market, we may see a faster recovery than anywhere else," said Faisal Durrani, head of Middle East research at Knight Frank.
For some categories, such as apartments, we do not expect prices to rise at a rapid pace as was the case for villas.”
According to a survey in July, the economy of the UAE, a hub for trade and tourism in the region, is expected to grow 4.2% in 2022. The UAE Central Bank expects growth to reach 3.8%.
Nine out of 11 analysts polled expected an increase in Dubai's housing market activity over the next year, and two said it would remain unchanged.
No analyst expected a decline in the market.
Of the analysts who answered an additional question, five said the big recovery in the economy is the biggest bullish influence on the housing market's outlook over the next year.
"Immigration reform, trade liberalization and the 2040 plan are all giving a huge boost to Dubai's economy," said Anuj Puri, Chairman of Anarok Real Estate Consultants.
Expo 2020 Dubai will also contribute to boosting economic activity.
Three analysts cited job growth as an upside factor, two cited the effective response to the pandemic and another spoke of the increase in affordable homes.
On a cost scale of 1 to 10, where 1 is too cheap and 10 is too expensive, analysts put the average back to 4, categorizing housing in Dubai into the inexpensive category.
A clear majority of analysts, 9 out of 11, said affordability would either remain the same or improve over the next two to three years.
One of the main reasons why Dubai's housing market is relatively cheap compared to other global markets is that there is an oversupply of homes.
Faisal Durrani said: “Next year, we are currently tracking approximately 64,000 units due to be completed.
If this figure is achieved, it will be the highest level of achievement since 2009 (the global financial crisis)."
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