The question, for developers and investors, is how long they can last
The mansion is one example of a red-hot property market in Dubai, the commercial hub of the United Arab Emirates . Prices are also soaring in Riyadh, the Saudi capital. Both logged double-digit price increases last year, when much of the rich world was in a housing slump. Developers are thrilled. But investors are wondering how long the boom can continue.. It recorded nearly 122,700 sales last year, a 45% increase from 2021.
The boom looks different in Riyadh, which has been a focus of Vision 2030, the kingdom’s plan to diversify its economy away from oil. Saudi citizens are moving there to find jobs and multinational firms have been told to move their regional headquarters to Riyadh by the end of the year or lose out on government contracts.
This fits a broader boom-time feeling in a Gulf buoyed by high oil prices. But brokers think prices in both cities will fall next year. The Saudi market is already slowing. Some 70,000 homes were sold in the first half of this year, down from 103,000 last year. New mortgages fell by 35%.