Dubai is one of the cities with the lowest risk of real estate bubble
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The largest Swiss financial holding company UBS has released the Global Real Estate Bubble Index 2023 report.
During the period from mid-2022 to mid-2023, Dubai property prices increased by 15% on an inflation-adjusted basis. Among all cities included in the study, this is the largest increase in value.
The activity of the rental market is indicative of real demand for housin when rates are rising even faster than property prices. Strong population growth fuelled by an influx of expats is supporting demand. Rents have risen by 20% over the past year adjusted for inflation.
The market is stable in relation to the 2008-2009 crisis. The risk of housing oversupply remains if property developers overreact to the price boom of recent years.
UBS experts think that property prices in Dubai are fair and put the city on par with New York, Warsaw, San Francisco and Singapore in its bubble risk ranking.
Despite the cyclical nature of the Dubai property market and its propensity to oversupply, the price tendency should remain strong in the coming quarters.
Source: UBS
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