Morgan Stanley expects the rally Dubai’s in property prices to continue this year — even after a 20% jump since 2020 — due to cash buyers, yield-hunting investors and the reopening of China.
Prices are likely to be remain high because about 80% of property sales in Dubai are cash based and so less impacted by interest rates, investors will continue to be drawn by attractive rental yields and a pick up in Chinese investors will buoy demand, analyst Nida Iqbal wrote in a report dated April 13.
Demand for Dubai real estate is booming after the government’s handling of the pandemic and its liberal visa policies attracted more foreign buyers. The city is also benefitting from an influx of wealthy investors such as Russians seeking to shield their assets, crypto millionaires and rich Indians seeking second homes.
The average home price in Dubai climbed 12.8% in the 12 months through March 2023, while the average residential rent surged 26.3% over the same period, according to real estate adviser CBRE Group Inc.
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