One of the most notable conclusions from the recent release of the UBS Global Real Estate Bubble Index 2025 was that Dubai had risen into the “elevated risk” category. Since mid-2023, the Emirate’s real estate market has undergone double-digit price increases, and prices are now almost 50% more than they were five years ago.
Dubai was placed in the same risk category as Los Angeles, Amsterdam, and Geneva by the index, which gave it a higher chance of its real estate bubble popping. This begs the question: are Dubai’s foundations robust enough to endure a cooling phase, or should it be worried about an impending bubble?
Mario Volpi, Senior Vice President Investment Advisor at Allegiance Real Estate, states, “Although any increase in this index from a prior lower level is never welcomed, I believe that we have to assess all of the factors.” The fundamentals of this bull run are evident, even though it is clear that the Dubai real estate market cannot continue to grow year after year.
He goes on to say: “The population is growing at a rate that will sustain this course for a while longer. Any price stabilization that may come will be welcome, but this too remains to be seen.” While villas and townhouses will continue to see robust growth for some time to come, we may see more stability in prices for apartments in some areas.
Also Read:
Mirela Sejdinovic: Delivering Expert Event Solutions with Infinity Pulse Events
Ministry of Finance Announces Decisions on Electronic Invoicing System
About Author
