Dubai property rally could last for years: Morgan Stanley

The rally in Dubai’s residential property prices isn’t stopping anytime soon, Bloomberg reported, citing a Morgan Stanley report.

“Robust demand, peaking supply growth and long lead times for new projects could lead to a tighter-than-expected market over the next several years,” said analysts Katherine Carpenter and Nida Iqbal.

For properties worth at least 10 million dirhams ($2.7 million), a record 84 changed hands in March, according to data from real estate consultant Property Monitor.

Buying real estate is one of the fastest ways of getting a residency permit in Dubai, which further eased coronavirus-linked restrictions on Monday. Emaar Properties, the biggest listed developer in the emirate, posted a 65 percent jump in villas sales in the first quarter from the year-ago period.

Demand picked up amid “a wave of government reforms over the past 12 months, attractive mortgage rates, and a shift in demand patterns due to Covid-19,” according to Morgan Stanley.