- The boom in Dubai's residential real estate market has begun to spread to the city's outskirts, with prices of luxury projects in key areas hitting record highs. The city, whose most famous neighborhoods stretch parallel to the shores of the Arabian Gulf, is witnessing a growing demand for housing in areas stretching east towards the desert. Deals in some areas of secondary locations such as Dubai Silicon One and Dubai Sports City reached record levels.
- This recovery continued until last July, when apartments which account for approximately 85% of the housing supply in Dubai, recorded an average increase of 9% in prices compared to the previous year, the largest increase in its history. Home prices increased by an average of 2% compared to the previous month. Villas outpaced this increase, although the overall rebound in apartment prices contributed to the price increase for secondary locations.
Why it matters
The strength of the Dubai real estate market's recovery contrasts in a large way with the decline in many other markets, as historical interest rate hikes have caused a weakening of purchasing power in most economies. Toaima of Value Strat explained that cash buyers account for the vast majority of deals in the emirate, which helped boost the market's rise. However, the market's recovery has been mixed so far, depending on the area.
