Low risk of bubble in Dubai property market: UBS

According to the UBS Global Real Estate Bubble Index, Dubai has the second lowest risk after Warsaw among the world's 25 major cities. Despite a very buoyant year the market is now only back to its 2019 level and is still around 25% below its 2014 peak. Putting it within fair value territory.

The post pandemic reopening, along with the fact that Dubai coped with the situation better than virtually all other cities has certainly had an enormous effect on investor sentiment. That coupled up with the influx of HNWI’s and foreign investors taking advantage of the low Tax environment and lifestyle offering should see 2022 end on a very positive note. Looking beyond, the market is also likely to benefit from the recent visa reforms, immigration growth and increasing transparency of transactions.

Along with property prices, rents have also increased over the last couple of years. This means that even with the growth in sales prices, yields are still very attractive for investors. Therefore, Dubai is one of the major global property investment markets that is not overvalued or at risk of major correction. In contract, the cities with the highest risk according to the report are Toronto, Frankfurt and Zurich.