Dubai real estate market has demonstrated the third largest increase in the net cost

Dubai's real estate market has become one of the best in 2021, while the cost of luxury housing in the emirate has increased by 17.4%. Overall, Miami and Los Angeles topped the charts in terms of cost of capital, with annual growth of 21% and 20%.

Dubai also ranked first in terms of rent growth, which averaged 25% in December. This is the highest indicator among 30 cities in the world. 

The high performance of Dubai, despite the ongoing pandemic, is explained by the high demand from buyers who want to purchase part of the elite real estate of the city.

However, Swapnil Pillai, deputy director of Middle East research at Savills, said that the value of fixed capital in Dubai is still undervalued compared to similar indicators in the world. He said further price increases are expected in 2022, albeit at a «more sustainable level».