Dubai Property to Benefit From Cash Buyers and China Reopening

(Bloomberg) — Morgan Stanley said it expects the rally in Dubai’s property prices to continue this year — even after a 20% jump since 2020 — due to cash buyers, yield-hunting investors and the reopening of China.

Prices are likely to remain high because about 80% of property sales in Dubai are cash-based and so less affected by interest rates, analyst Nida Iqbal wrote in a report dated April 13. In addition, Iqbal wrote, investors will continue to be drawn by attractive rental yields, and a pickup in demand from Chinese investors will buoy sales.