2024-01-30 06:30:02
Dubai – Mubasher: A report issued by real estate consulting firm Cushman & Wakefield Core expects that the value of real estate in Dubai will rise by up to 12 percent during the current year, making some residents of Al Ghamara unable to afford housing.
The newly issued report suggested that house prices will rise by 8 percent to 12 percent this year after rising by 20 percent on average in 2023.
The report indicated that the increase in prices comes despite the completion of the construction of 39.4 thousand homes – the highest number since 2020 – which contributed to reducing demand, according to Bloomberg.
Rents are expected to jump between 10 percent and 12 percent this year, compared to 19 percent in 2023, and 27 percent in 2022.
Prathyusha Gurapu, head of research and consulting at Cushman & Wakefield Core, said affordability is a growing concern for the low- to mid-range segment of the market.
He pointed out that the sharp rises we witnessed in 2023 are not expected to continue in 2024, but the market will witness rises at sustainable levels.
He noted that limited post-handover payment plans in the off-plan real estate market and the possibility of lower interest rates may support the secondary sales market and help moderate price increases.
It is noteworthy that home sales in Dubai last year broke a decade-long record, while rental prices jumped to unprecedented levels.
The recovery from the 7-year recession was driven by an influx of wealthy investors, and the government also relaxed visa laws and introduced a permit system for job seekers and the self-employed.
This rise is a catalyst for developers seeking to capitalize on the growing demand, and pre-sales of apartments rose by 78 percent last year, while off-plan villa sales fell by 31 percent.
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Dubai leads the world’s cities in expectations of rising residential real estate prices
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