The value of completed units in Dubai’s freehold housing market has soared by 1,632 percent in the past decade, new research reveals.
In 2006, the market capitalisation for completed freehold units across the emirate was AED28 billion ($7.6 billion), according to Reidin figures compiled by Dubai-based Unitas Consultancy.
By comparison, in 2016 market capitalisation had grown to AED485 billion ($132 billion), the research shows, and is forecast to rise to AED660 billion ($179.6 billion) by 2022.
The figure rises further to AED1 trillion ($272 billion) when a substantial pipeline of unannounced stock in master communities yet to be built is taken into account, Unitas said.
Its report also shows that Dubai has allocated substantially more of its budget spend on developing the emirate’s infrastructure than either the UK or the US.
In 2016, Dubai allocated 35 percent of its budget expenditure, which is 10 times more than most developed countries. The UK allocated 8 percent of its budget spend on infrastructure and housing, while the UK and Saudi Arabia allocated just 3 percent, according to the report.
Unitas’ report states: “We opine that with debt levels having room to grow, and with rapidly rising population growth rates, it appears likely that although the growth rates of asset values may well be lower than what was achieved historically, there will be an expansion of both the values and the quantum of real estate assets and it is this prime pump along with infrastructure spending that will continue to underpin economic growth.”For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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