The latest report from the consulting agency indicates that the rental rates will continue to rise for residential and commercial properties slowly but steadily.
Real estate sales prices and rental rates in Dubai have almost reached pre-pandemic levels. The number of transactions and their cost broke records in 2021.
However, one must not forget the "low base effect", which can distort the market picture with high recovery rates.
Haider Tuaima, head of the Real Estate Market Research Department at ValuStrat, pointed to positive changes in the VPI indicator (index of changes in the capital value of off-plan real estate and offices). In 2021, the index recorded a 67.3-point increase in rent in Dubai.
This is impressive growth — quarterly by 6.7% and 18.9% for the year.
But the average rental rates in Dubai are still 4.9% lower than the overall pre-pandemic indicators.
However, ValuStrat is cautiously optimistic about 2022. COVID-19 remains the "Black Swan", including Omicron. The problem of oversupply in the market, especially in the apartment segment, remains unresolved.
In the most popular areas of the city, however, the capital value of real estate should surpass the record figures of 2014 — basic in many aspects of the market.
