Real estate prices in Dubai will rise next year driven by demand from foreigners

Real estate prices in Dubai will rise next year driven by demand from foreigners

Reuters pool of real estate analysts showed that house prices in Dubai are expected to increase steadily.

Its growth for next year is predicted to double due to the last three months analysis thanks to the demand from foreign investors and increased purchasing power.

The economy of Dubai has revived significantly this year with the opening up of trade and travel sectors in the light of a successful vaccination campaign and the early relaxation of Covid-19 restrictions that have supported a previously struggling real estate sector.

Dubai Lands Department’s monthly data showed that the emirate’s real estate sector performed its best in eight years in October, and this trend is expected to continue in 2022.

The survey conducted from 18 November to 6 December surveying 11 real estate analysts, showed that house prices in Dubai will increase by an average of 5 percent in 2022, more than double the 2.5 percent forecast three months ago.

“The success of Dubai’s first engagement with the coronavirus, backed by a vaccination course in the Emirates, made Dubai the only major global city to remain largely free of constraints,” said Chris Hobden, head of strategic consulting at Chestertons MENA in 2021.

“Consequently, steadiness, complemented by recent visa reforms, relatively attractive prices and overall quality of life in the emirate, continues to attract new residents. Economic improvement will likely continue in Dubai in 2022, so we expect international demand to remain strong next year.”

When asked what will be the driving force behind the Dubai housing market next year, most respondents, seven out of 11, answered that this is demand from foreign investors and four of them went to domestic demand.

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