DUBAI’S REAL ESTATE MARKET PREDICTED TO GROW FOR THREE YEARS

Real estate analysts have scrutinized the situation in Dubai’s market, concluding that prices are unlikely to fall in the near future.

Analysts argue that Dubai finds itself in a unique position, currently attracting investment and migration from both Western countries and Asia. This fundamentally distinguishes the present situation from that of 2009 and 2014 when the local real estate market peaked.

Despite the rapid price growth, Dubai still lags behind major cities like New York and London. For instance, property in central London can cost up to $15,000 per square meter, and yet, most of it is old and is not considered premium. In contrast, the price per square meter in new buildings in the center of Dubai averages around $7,500, thus half of what it is in London.

Based on AI analysis, Proptech experts predict that Dubai’s real estate market will continue to grow over the next three years. In terms of the number of transactions and property price increase, 2023 may reach a peak, after which the growth will slow down. The AI also forecasts that Dubai neighborhoods Sobha Hartland and Creek Harbour will soon become highly sought-after by buyers and investors.

Inflation and rising property prices can slow down the overall growth of a country’s economy, which may impact the middle class. To mitigate this effect, Dubai has made efforts to increase housing affordability, particularly through the construction of social housing. This may render the real estate market more resilient, preventing a real estate “bubble.”