The Swiss bank UBS points out that Dubai is the only real estate market in a lower category than last year, according to the Global Real Estate Bubble Index 2021.
The report indicates that high oil prices, a simplified mortgage process, housing affordability, and the general economic recovery make the real estate sector grow.
Before the pandemic, low oil prices and oversupply in the real estate sector led to a prolonged market decline. The coronavirus restrictions in 2020 worsened the situation: the economic activity declined, many people lost their jobs and left the UAE, leading to a further imbalance in demand and supply.
These factors have led to a general drop in prices and rents of residential and commercial properties.
However, many companies, tourists, expats, and foreign workers are returning to the market. Successes in the fight against coronavirus, vaccination, and economic recovery are once again making Dubai an attractive destination for migration, and low real estate prices inspire visitors to buy and rent.
The latest S&P report confirms the above and highlights the success of the government's policy in developing a visa program and corporate business legislation.
The 2020 World Expo in Dubai, which began on 1 October of this year, is expected to have a positive impact on the market despite the pandemic. Without solving the structural problems of demand and supply imbalances, the market recovery could be unsustainable.