Problems In The Global Economy Will Not Affect The Stability Of Real Estate In Dubai In 2023
April 19, 2023
Problems In The Global Economy Will Not Affect The Stability Of Real Estate In Dubai In 2023
World economic problems that include inflation and interest rates do not affect the stable work of Dubai companies in the real estate sector. During the current year, despite a very unstable and problematic situation in the global economy, it has not made any changes in the real estate sector of the UAE. Consistent profits, increased creditworthiness of consumers and a stable financial flow will be ensured through growth.
Due to a possible decrease in demand, real estate prices may stabilize in 2023. The reasons for this are the increase in interest rates, devaluation of currencies and inflation in developing countries, as well as other consequences of growing economic pressure in the world.
This year will see a reduced amount of borrowed capital and an improvement in the performance of Dubai real estate companies.
At the same time, sufficient liquidity is expected and the need to provide additional financial resources will decrease. Strong cash flow will save funds for large capital expenditures, new acquisitions and dividends.
With new and recent property sales, developers' profit growth will increase, and with the results of very profitable sales in 2021 - 2022, they also have good forecasts in the coming years.
For real estate agencies, the undoubted advantages will be an increase in visits and a new influx of foreigners who want to buy real estate. However, there are some economic barriers that can contribute to possible cost reductions.
The excess of new offers in the rental market will have a significant impact on rental prices.
Based on S&P Global Ratings in 2023, Dubai's GDP is expected to grow by 3%, while the inflation rate will also be 3% per year. The population of the emirate will increase by 3-4%.
Holding the oil price will please investors in the GCC countries. At the same time, the international tourism industry will continue to return to pre-recession before 2020.
