Dubai real estate prices upsurge will not stop anytime soon, Morgan Stanley, American multinational financial services and investment institution said.
“Robust demand, peaking supply growth and long lead times for new projects could lead to a tighter-than-expected market over the next several years,” analysts Katherine Carpenter and Nida Iqbal wrote in a report.
The report indicated that commercial activity in Dubai, the main financial center of the Middle East, rose to the highest level since late 2019.
This is due to the recovery of tourism and the rapid distribution of vaccines, the report said.
The UAE has one of the highest vaccination rates in the world.
Dubai real estate prices
For properties worth at least 10 million dirhams ($2.7 million), a record 84 changed hands in March, according to data from real estate consultant Property Monitor.
According to Morgan Stanley, buying real estate is one of the fastest ways to obtain a residence permit in Dubai, which eased restrictions linked to the Coronavirus on Monday.
Emirati media also said today that Emaar Real Estate, the largest real estate developer in the emirate, recorded a jump in villa sales in the first quarter of this year, amounting to 65%, on an annual basis.
Demand for real estate in Dubai has risen amid a wave of government reforms over the past twelve months, attractive mortgage rates, and a shift in demand patterns due to the pandemic, according to Morgan Stanley.
The property tracking gauge for stocks in Dubai has increased by 7% this year, although it is still down 74% from its peak in 2014.
Specialists in the real estate market expected that the decline in real estate prices in Dubai will slow down during the next two years 2021 and 2022.
Specialists attribute the slowdown in expectations to hopes for the efficacy of the pandemic and an expected economic recovery.
These expectations come at a time when the United Arab Emirates is suffering from a steady rise in the number of COVID-19 infections, which has prompted it to close the economy and reduce the number of tourists.