Dubai News: House prices in Dubai will rise slightly and remain affordable in the next few years: polls

A Reuters survey of real estate analysts shows that the residential real estate market in Dubai is on a stable track and prices are expected to rise slightly in the next few years. They said that during this period, real estate prices there will remain at an affordable level.

According to the successful vaccination campaign, the economy has rebounded sharply from the pandemic in the city-states and has spread to the real estate market, and sales continue to grow. Dubai Land Department Record.

According to a survey of 11 real estate analysts conducted by Reuters from August 11 to 19, Dubai house prices are expected to rise 3.0% this year and 2.5% in 2022, compared to 1.1% and 2.8% three months ago. .

This modest outlook is in stark contrast to other world real estate markets such as Canada, Australia and New Zealand, which have already set record highs and are expected to rise by double digits this year, thus extending the limits of affordability.

Faisal Durrani, head of research at Knight Frank Middle East, said: “The overall price is still about 36% lower than the last peak in 2014, so relatively speaking, we are still a long way from the previous peak.”

“And the recent rise definitely shows that the market in some regions has begun to bottom out. In the high-end market, we may see a faster recovery than elsewhere. For some regions, such as apartments, we don’t expect prices to rise so much. As fast as the villa.”

According to a poll conducted by Reuters in July, the UAE economy is a regional trade and tourism powerhouse, composed of seven emirates including Dubai, and is expected to grow by 4.2% by 2022.Should Central Bank of the United Arab Emirates Fix it at 3.8%.

Nine out of 11 analysts stated that activity in the Dubai real estate market will increase in the coming year, and two stated that it will remain unchanged. No one expected it to fall.

Among the analysts who answered additional questions, 5 out of 11 said that a sharp economic improvement is the biggest upside risk to the prospects of the real estate market in the coming year.

“Immigration reform, trade liberalization and (the) 2040 master plan have all brought significant stimulus to the Dubai economy. The Dubai Expo will also promote economic activity. This will inevitably help attract more foreign direct investment and indirectly increase the overall The real estate market has benefited,” said Anuj Puri, chairman ANAROCK Property Consultant.

Three people chose job growth as an upside risk, two said they responded effectively to the pandemic, and one said an increase in affordable housing.

On an affordability scale of 1 to 10, 1 is very cheap and 10 is very expensive. The median returned by analysts is 4, which ranks Dubai housing as cheap.

The vast majority of analysts (9 out of 11) said that affordability will remain the same or improve in the next two to three years. Only two people expected the situation to deteriorate.

One of the main reasons why Dubai’s housing market is still relatively cheap compared to other markets in the world is that there is ample supply of housing available for living.

“Next year, we are currently tracking nearly 64,000 units that are about to be completed. If this number becomes a reality, it will be the highest level of completion since 2009 global economic crisis (Global financial crisis),” Knight Frank’s Durani said.

“Obviously…oversupply has been a problem in the past, and it is still a risk.”