Over the next 2 years the Dubai house prices are set to rise steadily by demand of foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The latest Reuters poll 11-26 May 2022 showed a median rise of 7.5% in Dubai house prices in 2022, unchanged from the previous poll taken 2 months prior.
It's clear to say the World Expo 2020 along with the recent opening of travel and easing restrictions lifting has most defintily had a positive effect on the current market status.
Recent data from the Dubai Land Department (DLD) showed the Dubai real estate market having its best quarter in more than a decade as sales transactions were at its highest in Q1 since 2010.
It is believed that demand from foreign investors will drive Dubai's housing market this year and next.
These expected price increases may soon cause challenges for first-time buyers as interest rates are expected to climb higher. Where prices are still below their last peak in mid-2014, this faces several downside risks such as higher interest rates, lack of supply of affordable homes and inflationary pressures for the coming years. Affordability for first-time buyers in coming years will decline.
Dubai, which houses a large number of expatriates, will soon also face also less affordablity for renting in the next 2 years.
To find out more on the Dubai real estate market, check our social media channels every Monday.
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