Morgan Stanley predicts investors using cash will help sustain the Dubai property market


Joe Baker
Joe Baker
Senior Copywriter
Joe is a Senior Copywriter working on reports, news and analysis. Previously, he worked as a B2B copywriter, journalist and editor covering a broad range of topics, including technology, transport,… Read more
  • According to a new report from Morgan Stanley, cash buyers and Chinese investors are expected to buoy the Dubai property market.
  • The report surveyed the region's developers and real estate agents and found that cash buyers are the most important factor in driving demand in the Dubai real estate market.
  • Chinese investors, in particular, are seen as playing a key role in the market, with many developers and real estate agents citing them as a major source of demand.

Morgan Stanley is forecasting that Dubai's property prices will keep rising this year, even after a 20% surge from 2020, because of cash buyers, investors seeking high returns and the resumption of travel from China.

Prices are expected to stay high due to most Dubai property sales being conducted with cash, unaffected by interest rates.

Additionally, investors are still drawn to attractive rental yields. An increase in Chinese investors is further raising demand, according to analyst Nida Iqbal in a report.

There has been an increased demand for Dubai real estate due to the government's successful pandemic management and liberal visa policies, attracting more foreign buyers.

The city is being bolstered by wealthy investors from Russia looking to safeguard their resources, as well as crypto millionaires and Indians looking for holiday homes.

Investors must use safe money transfer methods and protect their investments as they continue to invest.

Some important steps investors should take include researching potential investments, diversifying them, monitoring their investments regularly and using secure financial services for international money transfers and other transactions.

The real estate advisory firm CBRE Group Inc. reported that the average home price in Dubai increased 12.8% during the 12 months up to March 2023, while the average residential rent jumped 26.3% in the same period.

The report states that structural reforms have made purchasing a property more appealing for ex-pats than the rental, as rental yields in Dubai are as high as 5.5%. In contrast, in other major cities around the globe, they range from 2% to 5%.

The real estate market in Dubai is expected to remain strong, thanks to demand from cash buyers and increased investment from China; the future outlook for Dubai property is looking positive.

As more investors continue to invest, the FXC's online money transfer tool provides an efficient and secure way to transfer money domestically and internationally. The tool is easy to use and can be accessed from anywhere.

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