Foreign demand will drive up property prices in Dubai next year
According to a Reuters poll of property analysts, Dubai house prices will rise at twice the rate predicted three months ago, driven by foreign investor demand and improving affordability.
Dubai's economy rebounded sharply this year thanks to a successful vaccination roll-out and an early easing of COVID-19 restrictions, as trade and travel sectors opened up, helping the previously ailing real estate sector.
According to monthly data from the Dubai Land Department, the city state's property sector had its best October in eight years, with momentum expected to continue into 2022.
The dates are November 18-Dec. According to a Reuters poll of 11 property market analysts, Dubai house prices will rise by 5.0 percent in 2022, more than double the 2.5 percent predicted three months ago.
House prices are expected to rise by 5.0 percent in 2023.
According to a report by consultancy Chestertons MENA, Dubai has become the only major global city to remain largely restriction-free through 2021. The success of Dubai's initial COVID-19 response, bolstered by the UAE's vaccine rollout, is expected to boost international demand next year.
When asked what will drive Dubai's housing market next year, the majority of respondents, seven out of eleven, said foreign investor demand. Four people chose local demand.
An oversupply of homes from previous years has saved this once-hot real estate market by keeping affordability in check. Most other major property markets are experiencing out-of-control house price inflation.
When asked what will happen to house affordability in the next 2-3 years, six out of ten analysts predicted an improvement, while four predicted a worsening.