Compare Listings

Foreign demand will drive up property prices in Dubai next year

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.

Source: Reuters

Related posts

  • News

How Dubai’s property prices and rents are expected to perform in 2022

According to ValuStrat research, prices and rents for villas in highly desired prime locations could exceed 2014 peak levels.

Continue reading
  • News

Property Market Trends in Dubai: Forecast for 2022

The Dubai real estate market is showing all the signs of a steady recovery after surviving a three-year oil price slump and a global pandemic slowdown.

Continue reading

Dubai Real Estate Prices Will Continue to Increase in 2022

Transaction volumes are expected to increase significantly during the first half of 2022, and then gradually stabilize in the second half of 2022.

Continue reading