Morgan Stanley said Dubai real estate prices have risen 2020% since 20 and will continue to rise this year, mainly due to an influx of cash buyers and investors and China's reopening.
Analyst Nida said that about 80% of Dubai's properties are cash transactions, so they are less affected by interest rates. Investors will continue to be attracted by rental yields, and the recovery of Chinese investors will boost real estate demand, so prices are likely to remain stable at a high level.
Dubai's liberal visa policies have attracted many foreign buyers, and the emirate's real estate market has boomed. The city has also benefited from an influx of wealthy investors, including Russians seeking to protect their assets, cryptocurrency tycoons and wealthy Indians buying second homes.
According to CBRE Group, average house prices in Dubai rose 2023% in the 3 months to March 12, while average residential rents rose 12.8% over the same period.
The report said that for expatriates, buying property is more attractive than renting as rental yields in Dubai are around 5.5%, compared to 2% to 5% in other major cities around the world.
