Property charges pretty valued regardless of the highest growth among all majority ties
Property expenses in Dubai witnessed the boom amongst all of the foremost cities within the past 4 quarters, the Swiss bank said, adding that costs will stay strong in the coming months as the “red-hot rental market” is offering sturdy returns to investors and landlords.
Do prices of Dubai property face a bubble risk? Here is what the Swiss bank says
Dubai property is not facing a bubble risk as prices are fairly valued despite a sturdy rally after the pandemic.
According to UBS Global Real Estate Bubble Index 2023, the housing market of Dubai fairly valued, even though its reputation as a geopolitical secure haven has lately prompted a surge in demand for both renting and buying.
For the study, UBS analyzed residential asset costs in 25 predominant cities round the world.
Property prices within the emirate rose on the fastest rate in the year to June 30 in almost a decade, rising nearly by 17%. While rents increased even at a faster pace of 22.6%, according to global real estate consultancy CBRE.
Interest in the local property marketplace has grown massively after the government effectively controlled the pandemic, attracting high-net-worth people from throughout the globe.
“In Dubai, real housing prices persisted to boom at a double-digit price. Given sturdy profits increase and a red-hot rental market, with rental growth even surpassing owner-occupied price boom, we see the market as fairly valued,” the Swiss bank stated.
“While Dubai is fantastically cyclical and susceptible to overdevelopment, rate momentum should remain strong in the coming quarters,” it delivered.
