Dubai property prices could rise 5-10% this year

Dubai's real estate market could see price increases of 5-10% 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% escalation" in 2024, he said.

Residential property prices in Dubai rose 19.9% in December from a year earlier, consultancy ValuStrat said in a report.

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 hit the property market and weighed on the profitability of real estate firms.

Following the pandemic slump, the property market became red hot, fuelled in part by Russians fleeing their home country amid the 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.