Dubai property prices continue to rise amid economic recovery and higher demand

Property prices in Dubai rose 15 per cent in July, as the emirate’s economy recovers from the coronavirus pandemic on the back of the UAE's vaccination programme and new stimulus measures, according to Property Monitor.

The average property price in the emirate climbed to Dh941 per square foot ($256) last month from Dh818 per square foot recorded during the same month last year, the monthly market report said.

Overall, property prices in Dubai have jumped 11.8 per cent this year, mirroring the global trend in the property market as the world recovers from the pandemic. Prices rose 1.9 per cent in July compared to the previous month.

“Although growth has been very strong, we expect the pace of recovery to slow over the rest of 2021, moving to a more sustainable pace across Dubai,” the report said.

“Looking across the world, double-digit price rises have been seen in the UK, the US, Canada, Scandinavia and parts of Europe, so the local recovery is very much part of a global trend as the world recovers from the pandemic.”

The UAE property market, which softened due to a three-year oil price slump that began in 2014, oversupply concerns and the pandemic, is showing signs of a recovery as people upgrade to larger homes with outdoor amenities amid an uptick in working and learning remotely.

Economic support measures and government initiatives – such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa programme – have also helped to improve sentiment.

Dubai’s total transaction volumes in July stood at 4,455, down 30.3 per cent on a monthly basis but up 78.5 per cent annually, the report said. “In July, the split between off-plan and completed property transactions remained in favour of the latter with Title Deed transactions accounting for 59.1 per cent of all transactions.”