The increase in residential property prices in Dubai is not expected to stop anytime soon, according to Morgan Stanley. Analysts Catherine Carpenter and Nida Iqbal noted in a report that "strong demand, the peak of supply availability, and the long timeline for launching new projects could lead to a tighter market than anticipated over the coming years."
**Impact of Vaccination**
Business activity in Dubai, the Middle East's financial hub, has risen to its highest level since late 2019, driven by a recovery in tourism and the rapid rollout of COVID-19 vaccines, as the United Arab Emirates has one of the highest vaccination rates in the world. Regarding properties valued at no less than 10 million dirhams ($2.7 million), 84 transactions were completed last March, marking a monthly record, according to data from the real estate consultancy Property Monitor.
Purchasing real estate is one of the fastest ways to obtain residency in Dubai, which eased COVID-19 related restrictions on Monday. Emaar Properties, the largest developer in the emirate, recorded a 65% year-on-year surge in villa sales in the first quarter of this year.
Demand for real estate in Dubai has increased amid "a wave of government reforms over the past twelve months, attractive mortgage rates, and a shift in demand patterns due to COVID-19," according to Morgan Stanley. The real estate stock tracking index in Dubai rose by 7% this year, although it remains 74% lower than its peak in 2014.
