House prices jump 21% as rich flock to #Dubai, but 2021 could be peak of current property cycle | ZAWYA MENA Edition

House prices jump 21% as rich flock to Dubai, but 2021 could be peak of current property cycle | ZAWYA MENA Edition

House prices in Dubai jumped 21 percent this year thanks to the government's response in arresting the spread of COVID-19, which triggered interest in the property market from rich investors outside the emirate, according to a study by global property consultant Knight Frank.

While developers are responding by pushing the envelope and bringing AED 10,000 per square foot homes to the market, more modestly priced properties continue to languish in Dubai's third property cycle. Indeed, residential values overall are still some 29 percent below the 2014 peak.

Faisal Durrani, Partner-Head of Middle East Research, Knight Frank said: “Excellent governance has always been a defining feature of the United Arab Emirates. And the post-Covid bounce currently underway in Dubai’s real estate market, which is driving the emirate’s third property cycle, is a reminder of the authorities’ phenomenal response to the pandemic."

“Yes, buyer habits have evolved over the course of the last 18 months, but the feel-good sentiment injected into the market by the way in which infection rates have been arrested in the UAE has played an incredibly strong part in driving villa prices up by 14 percent since January 2020,” he added.