Real estate bubble risk lowest in Dubai: UBS

Real estate bubble risk lowest in Dubai: UBS

Despite a buoyant year, the Dubai housing market, now only back to its 2019 price level, and still 25 per cent below its 2014 peak, is in fair-valued territory, according to the UBS Global Real Estate Bubble Index,

Dubai’s house price growth is likely to remain high in the coming quarters, but growth rates will gradually recede amid higher financing costs. – File photo

Published: Wed 12 Oct 2022, 5:23 PM Last updated: Wed 12 Oct 2022, 5:24 PM

Dubai’s real estate bubble risk is the second-lowest after Warsaw among the world’s 25 major cities as the nominal house price growth across the world accelerated to 10 per cent on average from mid-2021 to mid-2022 amid signs that the global housing boom is coming to an end, a study by a leading Swiss bank says.

Despite a buoyant year, the Dubai housing market, now only back to its 2019 price level, and still 25 per cent below its 2014 peak, is in fair-valued territory, according to the UBS Global Real Estate Bubble Index, which says that Toronto and Frankfurt exhibit the most elevated risk levels on housing markets.

Dubai’s house price growth is likely to remain high in the coming quarters, but growth rates will