Dubai: Residential market shrugs off inflation threat as housing transactions hit Dh61.9b

Dubai: Residential market shrugs off inflation threat as housing transactions hit Dh61.9b

The impact of global inflation on the UAE economy and the Emirate's property market is likely to be limited for now

Published: Mon 6 Jun 2022, 11:04 AM Last updated: Mon 6 Jun 2022, 11:09 AM

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.

Most effective action

"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