Dubai Real Estate: Record Home Prices May Start to Fall by End of 2024: S&P - Bloomberg
Dubai’s record property prices are expected to start easing by the end of next year and slightly reverse by 5% to 10% in the next 12 to 18 months, according to S&P Global Ratings.
“We do think the risk of a cyclical slowdown and potentially a mild reversal are increasing over the next 12 to 18 months,” Tatjana Lescova, S&P’s associate director of corporate ratings, said at an event on Wednesday. “All the global economic uncertainty could affect the demand in Dubai.”
Although prices are expected to increase a further 15% to 18% this year and then by another 5% to 7% next year when the market gradually slows down, according to S&P.
Dubai’s property market recently broke a decade-long record for home sales, while rental rates have jumped to unprecedented levels. The rebound from a seven-year slump has been fueled by an influx of wealthy investors such as Russians seeking to shield their assets, crypto millionaires and rich Indians seeking second homes. The government has also relaxed visa laws and introduced permits for job seekers and freelancers.
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