E - PAPER

CURRENT MONTHS

LAST MONTHS

VIEW ALL
  • About
  • TEAM REALTY+
  • CONTACT US
  • SUBSCRIBE
  • HOME
  • NEWS ROOM
  • COVER STORY
  • INTERVIEWS
  • DRAWING BOARD
  • PROJECT WATCH
  • SPOTLIGHT
  • BUILDING BLOCKS
  • BRAND SYNC
  • VIDEOS
  • HAPPENINGS
  • E-MAGAZINE
  • EVENTS
    • EVENT CALENDAR
    • UPCOMING EVENT
    • PAST EVENT
search
  1. Home
  2. INTERNATIONAL

Dubai Residential Market Shrugs Off Inflation Threat

Dubai Residential Market Shrugs Off Inflation Threat

BY Realty Plus
Published - Thursday, 09 Jun, 2022
Dubai Residential Market Shrugs Off Inflation Threat

Dubai residential market is expected to record Dh61.9 billion worth of villa and apartment transactions during the first five months of this year despite record spike in worldwide inflation, latest report shows.

Global property consultant Knight Frank believes that the impact of global inflation on the UAE economy and Dubai’s residential market is likely to be limited for now due to effective government measures.

“There are many reasons for cautious optimism when it comes to containing inflation in the UAE. The government’s extremely diversified imports strategy, steps to boost food security in recent years and the strength of the US dollar, which is curtailing imported inflation, are all huge positives,” said Faisal Durrani, partner and head of Middle East Research at Knight Frank.

"By far the most effective measure is the government’s pre-emptive stealth move to freeze the price for 11,000 basic goods, including milk, bread, meat and poultry. The policy has been bolstered by the surge in crude oil prices, which is going to underpin a sharp turnaround in economic growth,” Durrani said.

The relative positivity in the economy is percolating through to business activity levels, with the latest PMI reading for the UAE’s all-important non-oil sector holding steady at a 12-month high in April as orders continued to rise, however the pace of recruitment appear to have slowed slightly.

“The April PMI readings indicate that businesses are clearly nervous about rising cost pressures. Two immediate pressure release valves are a reduction in the pace of new hires and passing on costs to consumers. The latter is often seen as a last resort and we’re not seeing that yet," Durrani said.

Elsewhere, the rising inflation poses a limited threat to Dubai’s residential property market, according to Knight Frank’s analysis. Knight Frank, mortgaged buyers for villas and apartments account for just 18 per cent of Dubai’s residential market, by value, at present. Last year the figure was nearer 40 per cent and in 2007 just over 50 per cent of transactions were financed.

For the residential market however, Durrani said the bulk of deals at the top end of the price spectrum are cash purchases, in large part due to the unrelenting influx of ultra-high net worth capital targeting Dubai’s most expensive homes. So, with cash remaining king, the risk to the housing market is low for now. Furthermore, with house price growth in Dubai this year expected to hover at around 5-7 per cent for the mainstream market and 12-15 per cent for the prime markets, residential property in the emirate is still an excellent inflation hedge,” Durrani concluded.

  • TAGS :
  • Dubai
  • Residential Market
  • Inflation Threat
  • Faisal Durrani
  • partner and head of Middle East Research at Knight Frank
  • villa and apartment transactions

RELATED STORY VIEW MORE

Shapoorji Pallonji Completes Topping Out Of its Landmark Project in Dubai
Vietnam’s Demand for Logistics Real Estate Increases Sharply
UK House Prices Drop for First Time This Year

TOP STORY VIEW MORE

DIGITAL MARKETING SHAPING THE FUTURE OF REAL ESTATE

The first realty+ indian digital excellence awards and conclave with the theme “scaling new heights” was marked by the presence of the gurus of digital marketing.

16 August, 2022

GUJARAT REALTY SECTOR: CHARTING A SUCCESS STORY

16 August, 2022

SOCIAL MEDIA BRANDING : THINKING BEYOND THE WAVE FOR A VIRAL SUCCESS

16 August, 2022

NEWS LETTER

Subscribe for our news letter


E - PAPER


  • CURRENT MONTHS

  • LAST MONTHS

Subscribe To Realty+ online



REALTY+ SPECIAL ISSUES


  • 40 Under 40 July 2021

  • Brave and Beyond 2022

  • The Tech Titans

  • Realty+ Super CXO Coffee Table Book

VIDEO GALLERY VIEW MORE

Realty+ Indian Digital Excellence Awards 2022
Get connected with us on social networks!
ABOUT REALTY+

Started in 2004, Realty+, an exchange4media group publication is one of the most respected real estate magazines in India with offices in Delhi, Mumbai and Bengaluru.

Useful links

HOME

NEWS ROOM

COVER STORY

INTERVIEWS

DRAWING BOARD

PROJECT WATCH

SPOTLIGHT

BUILDING BLOCKS

BRAND SYNC

VIDEOS

HAPPENINGS

E-MAGAZINE

EVENTS

OTHER LINKS

SITE MAP

GDPR-COMPLIANCE

COOKIE-POLICY

PRIVACY-POLICY

TERMS AND CONDITIONS

Contact

ADSERT WEB SOLUTIONS PVT. LTD. B-20, SECTOR 57 NOIDA (U.P)

tripti@exchange4media.com
realtyplus@exchange4media.com

+91 98200 10226


Copyright © Realty Plus Magazine.