Dubai will continue to attract strong demand from property investors and witness project launches this year, but the “momentum” in the market is expected to slow in the wake of global turbulences, according to Asteco.
Mortgage transactions and project launches, in particular, are forecast to see some declines in 2023 compared to last year, as more rate hikes are implemented, and investors’ spending power is likely to weaken.
On the positive side, sales prices and rentals rates will remain “elevated”, while the market will continue to boost its supply stock, as developers complete ongoing projects.
In its report released on Monday, Asteco said around 47,700 apartments and villas will be added to the emirate’s housing supply this year, up by 53.8% from the number of homes delivered in 2022. The bulk of the units, around 40,000, will be apartments, while the remaining supply (7,700) will be residential villas.
“We will continue to see new project launches [this year] but the momentum is expected to slow, as constrained global growth will impact the spending power of international investors,” Asteco said.
“With more but smaller interest rate hikes expected in 2023, we anticipate a drop in mortgage transactions,” HP Aengaar, CEO of Asteco, also noted in the report.
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