Dubai real estate market stabilising; 7-10% price rise expected in 2023
Villa and apartment prices in Dubai continued to show signs of stabilisation at the end of 2022 and are still poised to register a citywide increase of around 7% to 10% this year due to strong demand for prime properties, according to a report from ValuStrat.
The ValuStrat Price Index (VPI), which tracks the market performance of residential properties across the emirate, slowed to less than 1% monthly increments for the last four months of 2022 to reach 86 points. Over the last 12 months, the majority of freehold locations also witnessed little or no change in capital values.
“Dubai’s residential market [is] displaying signs of price stabilisation,” the report, released on Friday, said.
Overall, residential capital values posted a year-on-year (YoY) growth of 12.7%, while rental values were up 25% YoY.
Last November, ValuStrat reported that apartment prices in Dubai were starting to stabilise after months of strong growth.
Dubai’s Investment Expansion to Lean on US, UK for Capital - Bloomberg
Dubai will seek capital mostly from the US and the UK, already its biggest sources of foreign direct investment, as it looks to expand trade and almost double funding from abroad over the coming decade.
The US and UK will be “the key markets,” Helal Al Marri, the head of Dubai’s Department of Economy and Tourism, said in an interview with Bloomberg Television on Friday. “In addition to that, we see bilateral agreements with over 200 countries really driving the trade.”
Dubai, one of the seven members of the United Arab Emirates, this week unveiled ambitions to achieve a cumulative increase of 650 billion dirhams ($177 billion) in FDI until 2033.
Abu Dhabi stocks close lower as lender FAB drags | Reuters
Abu Dhabi's benchmark stock index closed lower on Friday, dragged down by First Abu Dhabi Bank (FAB.AD) after the United Arab Emirates' largest lender sad it was no longer evaluating a possible takeover offer for Standard Chartered (STAN.L).
The index (.FTFADGI) declined 0.7%, with conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) shedding 1.3%, while state-controlled integrated utility firm Abu Dhabi National Energy Company (TAQA.AD) slipped 0.6%. Shares of First Abu Dhabi Bank dropped 2.3%.
Separately, Abu Dhabi National Oil Company (ADNOC) said on Thursday it would allocate 55 billion ($14.97 billion) dirhams to support development of low-carbon solutions, new energies and decarbonisation technologies across its portfolio by 2030.
Dubai's main share index (.DFMGI) dipped 0.4%, with Sharia-compliant lender Dubai Islamic Bank (DISB.DU) down 1.1%, while blue-chip developer Emaar Properties (EMAR.DU) dropped 0.7%.
