Dubai’s real estate market could see price increases of 5-10 per cent this year, the head of one of the city’s biggest developers, Damac Properties, said on Tuesday, adding he did not expect a correction in the coming two years.
“The market is still strong. I think it’s going to continue to remain strong,” Hussain Sajwani told Reuters on the sidelines of the World Economic Forum in Davos.
“It may not see the same price escalation (as previously), so prices may see 5-10 per cent escalation” in 2024, he said.
Asked if he was concerned about a possible correction in Dubai’s property sector, which boomed after a swift post-pandemic economic rebound and relaxed residency rules, Sajwani said: “Not for the coming two years.”
Damac is pushing ahead with growth plans and sees the biggest growth in the high-end and luxury segments, Sajwani said.
Damac delisted from the Dubai stock market in 2022 after the Covid-19 pandemic.
Following the pandemic slump, the property market became red hot, fuelled in part by the Russia-Ukraine war and wealthy individuals including professionals in finance, law and other sectors relocating.
Outside Dubai, the firm has investments in Britain and Miami, where Sajwani said Damac is doing well.
It also sees potential in the Saudi market, where it is looking at opportunities, he said.