09 May 2022 – Arabian Business – www.arabianbusiness.com
Property agent haus & haus has released a bullish report into Dubai’s property market, with its managing director predicting prices to as much as double within the next 10 years.
“As we move past one of the most unprecedented economic setbacks in generations with the pandemic, the outlook for Dubai’s economy and real estate market is very positive,” said Simon Baker, Managing Director of haus & haus real estate.
As Dubai’s marketplace matures, haus & haus believes investors can expect prices to increase significantly as we climb out of the bottom of the current economic cycle. “We would expect prices to as much as double within the next decade,” Mr Baker added.
Noting that Dubai property prices are currently at the same level as they were around eight years ago, coupled with the planned population growth, he feels this bodes well for property values. “Add to this the fact that the Dubai government has a target of reaching six million residents by 2040 – essentially doubling the current population – and we can see there are major capital growth opportunities.”
In the updated investment guide for 2022 Mr Baker wrote that property prices mid-2020 were reset to levels similar to what we experienced after the financial crisis of 2008/2009 “and it seemed like those of us who were too fearful to enter the property market last time have been given a second chance.”
But he believes this time around things could be even better. “Dubai’s property market is well regulated, the population has been growing steadily every year (doubling in the last ten years), and investment in industries continues to grow.”
Over the next 10 years he said that a growing population of long-term residents will absorb the shrinking supply of new properties and investors will continue to put their money in businesses in the region.
“You can expect to see the typically high Dubai rental yields of up to 7-8 percent start to soften as property prices begin to pick up. Realistically, we’ll see yields closer to 5 percent in the prime communities as the emirate’s property market continues to mature.”
However, he commented that this is still significantly better than other major cities such as London (2.7 percent) and New York (2.9 percent).
haus & haus noted that for 2021 there were over 84,196 total transactions, worth AED 300 billion as the market continues to recover.