Dubai’s residential property market is on a steady course, with prices expected to rise modestly over the next couple of years. The economy has bounced back sharply from the pandemic in the city-state following a successful vaccination drive, and that has spilled into the real estate market, with a continued increase in sales. Dubai’s house prices were forecast to rise 3% this year and 2.5% in 2022, compared with 1.1% and 2.8% expected three months ago, according to a Reuters survey of 11 property analysts taken Aug 11-19. That modest outlook stands in stark contrast with other world property markets like Canada, Australia and New Zealand where already record-high house prices were expected to rise in double digits this year, stretching the limits of affordability.
A regional powerhouse of trade and tourism, the United Arab Emirates economy – a union of seven emirates including Dubai – is expected to grow 4.2% in 2022. The UAE central bank pegged it at 3.8%. Nine of 11 analysts said activity in Dubai’s housing market would rise in the coming year and two said it would stay the same. None expected it to decline. Among analysts who answered an additional question, five of 11 said a sharp upturn in the economy was the biggest upside risk to the housing market outlook over the coming year. Immigration reforms, trade liberalisation and (the) 2040 masterplan are all giving a major fillip to Dubai’s economy. The Dubai Expo will also boost economic activity. This inevitably helps in attracting more FDI and indirectly benefits the overall real estate market.