How will 2023 recession impact the property market in Dubai?

 

As per PWC, GCC seems set to weather the expected global recession in 2023. Also, the head of the International Monetary Fund (IMF) has warned, “A third of the global economy will be in recession this year.” So, clearly, this recession will not have a ripple effect. Not to mention that the GCC countries have gained huge revenues from the strong oil prices. When it comes to the property market, 2022 witnessed spectacular performance and hit all-time high records for the highest property launches, delivery, sales value, and sales volume driven mainly by the Russian investors who have been buying properties at high prices, especially in BlueWaters and Emaar Beachfront. Also, Russian companies are shifting from Europe to Dubai and Turkey which contributed to a massive increase in the population that exceeded 3,550,000 people. The demand for luxury properties worth more than 15,000,000 AED surged and almost doubled in 2022 compared to last year. Andrew Tate described Dubai as the new America and the trend of the property market for the long term is always up. So, this could be a golden opportunity to invest in the Dubai property market and make a lot of profit. Property prices went up by almost 20% in 2022 and it reached a 100% increase in some cases such as Jumeirah Bay. Also a remarkable increase in records in these hottest areas.

On the 2022 UBS Global Housing Bubble Index, Dubai was ranked as “fairly valued” whereas other financial hubs like New York and London were marked as “overvalued” and Toronto was in “bubble risk”.  So, Dubai is still affordable when compared to other global hubs.



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