According to preliminary estimates of analysts, while maintaining the current pace of sales, by the end of the year the total value of real estate transactions will reach AED 61.9 billion, despite global inflation.
Knight Frank believes that the effects of global inflation on the Emirati economy and the Dubai real estate market are likely to be insignificant at the moment due to effective measures taken by the government.
According to Faisal Durrani, Partner and Head of Middle East Research at Knight Frank, «when it comes to the restraining factors of inflation in the UAE, there are plenty of reasons for cautious optimism. The government's diversified import strategy, steps to improve food security in recent years, and the strengthening of the US dollar, which curbs import inflation, all have a huge positive impact».
Effective measures are the key to success
The most effective measure is a hidden step taken by the government, freezing the prices of 11,000 goods, including milk, bread, meat and poultry. This policy was supported by a sharp rise in crude oil prices. Ultimately, this will contribute to a sharp turn in economic growth.
