Morgan Stanley predicts that the Dubai property market will improve due to higher-than-expected demand.

According to Morgan Stanley, Property prices in Dubai are increasing for the first time in six years, owing to increased demand and a decline in project launches since 2017.

According to ValuStrat consulting firm research, residential values increased by 1.2% month on month in April, and the index’s fastest monthly growth rate in seven years.

“Residential property demand has risen more rapidly than predicted, in the context of the 12-month wave of government reforms, competitive mortgage rates and COVID-19 demand shifts,” said Morgan Stanley. It increased its price target by 37% to 3.7 dirhams and upgraded the Emaar development in Dubai to ‘overweight’.  Some developers see a long recovery timeline.

“The industry is gradually recovering from the impact of the pandemic COVID-19 and its effects on various industries, including travel and tourism.

“The industry is gradually recovering from the impact of the pandemic COVID-19 and its effects on various industries, including travel and tourism. I still believe it will take at least 12-24 months to recover,” In a bourse filing, Hussain Sajwani, Chairman of Dubai’s DAMAC Properties, said.

DAMAC announced a wider first-quarter loss of 189.6 million dirhams on Sunday, compared to a loss of 106.1 million dirhams a year earlier. Meanwhile, Union Properties, another publicly traded Dubai developer, posted a profit of 5.6 million dirhams for the fiscal quarter ended March 31, compared to a loss of 121.9 million dirhams the previous year.