Dubai realty is witnessing a price hike for the first time in six years. As per Morgan Stanley’s research note, the existence of direct co-relation between “Demand and supply” is ensuring higher demand amid the slowdown of project launches. This positive sign is due to the various government initiatives adopted to boost demand for residential real estate and liquidity in the market. Reforms vis-a-vis, attractive mortgage rates, positive shift in demand curve amidst the COVID-19 situation have also benefited the Dubai real estate market.
Dubai’s DAMAC Properties Chairman Hussain Sajwani mentioned that the market is on a positive recovery slope from the effects of the COVID-19 pandemic. The impact can be clearly seen on business books of the various industries particularly the travel and tourism sector. Providing a sigh of relief, as per the realty consultants it is believed that recovery will take at least 12 months.
While some developers see recovery will take a bit longer but even they cited that market is on a positive recovery slope, thus the realty here holds potential on many growth aspects. Viewing charts of Dubai-listed “Emaar Development”, it is expected that the price target will witness an increase in price hike by 37%. Meanwhile, Union Properties, another listed Dubai developer, reported a profit of 5.6 million dirhams for the quarter ending March 31, versus a loss of 121.9 million dirhams a year ago.