Wednesday, June 19, 2024

Dubai’s economy recovers after “successful” vaccine campaign


According to a survey of real estate analysts, the residential real estate market in Dubai is on a steady path and prices are expected to rise over the next two years, but they expect real estate prices to be affordable for everyone during that period.

In the aftermath of the corona virus infection, the economy in Dubai recovered significantly after a successful vaccination campaign, and it also expanded to the real estate market, which continued to boost sales, according to Dubai Land Department records. According to a Reuters survey of 11 analysts from August 11 to 19, Dubai house prices are expected to rise 3% this year and 2.5% in 2022, compared to expectations of 1.1% and 2.8% three months ago.

“Overall prices are still lower than the last peak of 2014. In the higher segment of the market, we can see a faster recovery than anywhere else,” said Faisal Durrani, head of research at Knight Frank Middle East. For some segments, such as apartments, we do not expect prices to rise as quickly as for villas.

According to a July survey, the economy of the United Arab Emirates, a hub for trade and tourism in the region, is expected to grow by 4.2% by 2022. UAE Central Bank expects growth to reach 3.8%.

Nine out of 11 analysts expected an increase in Dubai’s housing market activity next year, while two said it would remain unchanged. No analyst expects the market to decline.

Among analysts who answered an additional question, five said the big recovery in the economy would have the biggest positive impact on next year’s housing market outlook.

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“Immigration reform, trade liberalization and the 2040 plan are all a huge boost to Dubai’s economy,” said Anuj Puri, chairman of Anarog Real Estate Consultancy. Expo 2020 will also contribute to the increase in economic activity in Dubai.

Three researchers cited job growth as an encouraging factor, two cited an effective response to the epidemic and another spoke of an increase in affordable housing.

On a cost scale of 1 to 10, 1 is the cheapest and 10 is the most expensive, with analysts putting the average back at 4 and categorizing homes in Dubai into the cheapest category.

A clear majority of analysts, 9 out of 11, said the affordable amount would remain the same or improve over the next two to three years.

One of the main reasons why Dubai’s housing market is relatively cheap compared to other global markets is the excessive supply of housing.

Faisal Durrani said: “Next year, we currently have about 64,000 units to complete. If this number is reached, it will be the highest achievement since 2009 (global financial crisis).

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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