Dubai: Why property prices, rentals will continue to rise next year also

Dubai: Why property prices, rentals will continue to rise next year also

Published: Sun 28 Apr 2024, 11:51 AM

Property prices and rentals in Dubai will continue to witness a rise until 2025 given that the population in the city is growing 300 per cent faster than fresh supply of properties in the first quarter of this year.

Real estate industry executives are extending their forecast for the three-year rally to next year as strong demand continues to outpace supply at a faster pace this year than estimated, especially after the UAE’s removal from the Financial Action Task Force’s (FATF) Grey List.

In February 2024, the UAE was removed from the FATF’s Grey List, which demonstrated the country’s transparency in financial transactions, hence, raising UAE’s profile among foreign investors.

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Initially, the price rally seemed to be slowing down this year, but going by the supply and demand estimates, real estate players are projecting that this rally will likely extend to next year as well, especially in the luxury segment.

“A lack of supply of ready homes is one of the key aspects impacting the market this year. While the population grew by 26,000 in the first three months of the year, we only saw