Dubai house prices were up 3.3% during the year to Q3 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 3.3% in Q3 2022 from a year earlier, a slowdown from a y-o-y growth of 7.71% in the same period last year. It was its sixth consecutive quarter of annual price increases after continuously falling from Q1 2015 to Q1 2021. On a quarterly basis, house prices in Dubai were up by 2.52% in Q3 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%

UAE: city centre apartment buying price, monthly rent (2-BR apartments)
  Buying price Rate per month Yield
Downtown   $898,448   $5,445 7.27%
Palm Jumeirah   $925,674   $4,991 6.47%
Dubai Marina    $598,965   $3,449 6.91%

Recent news. The UAE economy grew by 3.8% in 2021 from a year earlier, partially offsetting the 4.8% contraction recorded in 2020. The growth was primarily buoyed the recent increase in oil prices and a gradual recovery in tourist arrivals. 

With improved economic activity, the International Monetary Fund (IMF) has recently upgraded its 2022 economic growth forecast for UAE to over 6%, mainly driven by increased foreign investment inflow into the country, as well as new socio-economic initiatives taken by the government.