Interest rate hike unlikely to hit Dubai real estate market

Interest rate hike unlikely to hit Dubai real estate market

Residential properties in Dubai may witness a moderate steep in demand due to the increase in the interest rate; The interest rate in the UAE is expected to reach 4.90% by the end of 2023 that may impact the purchasing power of consumers

the market is expected to post a steady growth of up to five per cent this year compared to 11 per cent in 2022. — Supplied photo

Published: Sun 5 Feb 2023, 1:48 PM

The consecutive increase in interest rates is unlikely to hit Dubai real estate, but it may cause a slowdown in the sector’s growth this year, experts say.

Analysts, executives and industry stakeholders said the majority of real estate transactions in the UAE carried out in cash and it will not be impacted due to regular hike in interest rates. They said the market is expected to post a steady growth of up to five per cent this year compared to 11 per cent in 2022.

“The year 2022 concluded on a remarkable note for the Dubai property market as it broke several records. However, 2023 may see the real estate sector heading in a different way, partly due to the rising interest rate and the way it’s impacting