A Reuters survey of the views of real estate analysts showed that housing prices in Dubai are expected to continue to rise over the next year, twice the increase that was expected three months ago, supported by demand from foreign investors and improved purchasing power.
Dubai’s economy has rebounded significantly this year with the opening of the trade and travel sectors in light of the success of the vaccination campaign and the early easing of restrictions associated with Covid-19, which Supporting the real estate sector, which was previously facing difficulties.
Monthly data from the Dubai Land Department showed that the real estate sector in the emirate witnessed in October the best performance in 8 years, and the sector is expected to continue this trend in 2022.
The poll, which was conducted from November 18 to December 6, and polled 11 real estate analysts, found an average increase of 5% in house prices in Dubai in 2022, double the 2.5% increase expected 3 months ago.
Prices are also expected to increase by 5% in 2023.
Chris Hobden, Head of Strategic Consulting at Chestertons MENA, said: “The success of Dubai’s first interaction with the Corona virus, with the support of the vaccination path in the Emirates, made Dubai the only major global city that remained largely free of restrictions during 2021.
According to Hobden, “The resulting stability, complemented by recent visa reforms, relatively attractive pricing and overall quality of life in the emirate, continues to attract new residents. Dubai is likely to see continued economic improvement during 2022, so we expect international demand to remain strong next year. “.
When asked what will drive Dubai’s housing market next year, the majority of respondents, seven out of 11, said it was demand from foreign investors. And four went to it domestic demand.