Dubai’s real estate market continues its upward trajectory, with average property prices increasing by 75% since February 2021, reaching AED 1,750 ($476.50) per square foot. This surge has been driven by economic resilience, liberalized visa policies, and a growing population, leading to a 50-month price rally.
Despite these gains, the rapid growth has introduced challenges for residents, including a 20% rise in rental prices in key areas and increased traffic congestion. As the market approaches pre-2008 record levels, concerns about sustainability persist, especially given Dubai’s history of boom and bust cycles. Nonetheless, enhanced mortgage regulations implemented after 2008 have contributed to greater market stability.
