Dubai house prices were up 4.14% during 2022
The UAE’s housing market continues to grow, albeit at a slower pace, amidst improving economic conditions. In Dubai, inflation-adjusted residential property prices rose by a modest 4.14% in 2022 from a year earlier, a slowdown from a y-o-y growth of 8.1% in the prior year. On a quarterly basis, house prices in Dubai were up by 1.69% in Q4 2022.
Volatile housing market
Dubai's property market has been one of the world's most volatile. Dubai saw one of the world's worst housing crashes from Q3 2008 to Q3 2011 with house prices plunging by 53%. The housing market started to recover by end-2011 with prices rising by a total of 67% until Q4 2014. The housing market has been depressed since. It was only in the second half of 2021 that the housing market showed remarkable improvement.
Rents, rental yields: good yields in Dubai at 6.61%
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Recent news. The UAE economy grew by around 5.9% in 2022 from a year earlier, on the back of the strong expansion of the non-oil sector, according to the World Bank. This followed a modest growth of 3.8% in 2021 and a contraction of 4.8% in 2020.
Economic growth was estimated at a more moderate pace of 4.1% this year and 2.3% in 2024, amidst global economic slowdown due to high inflation, rising interest rates and reduced investments, based on World Bank forecasts.