Dubai has bucked a global trend in the property sector, according to a survey by Swiss investment firm UBS Global Wealth Management which ranked Dubai as one of the few undervalued housing markets.
The UBS Global Real Estate Bubble Index highlighted elevated risk levels in most markets, with Frankfurt, Toronto and Hong Kong topping the charts.
However, Dubai was the only market to be classified in a lower risk category than the previous year.
“The market is highly overvalued. By contrast, prices in Dubai were still falling leading up to the end of 2020, and the market is now undervalued,” states the report.
“Improved affordability, easier mortgage regulations, higher oil prices, and an economic rebound now seem to have finally kick-started a recovery.
“Although construction has slowed, essentially limitless supply poses a risk for long-term appreciation prospects.”
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