The bank expects the real estate rally to last several years.
“The reported sales rebound in Dubai year-to-date has been remarkable,” HSBC’s Stephen Bramley-Jackson and Alok Baid wrote in a report.
HSBC also raised its rating on Dubai’s top developer Emaar Properties by about a quarter to 5.2 dirhams. The stock currently trades at about 4.13 dirhams.
Still the positive outlook on the market contrasts with other more negative views from some commentators that include international property consultancy Knight Frank.
It sees a supply glut that’s held down Dubai’s property prices for over half a decade to persist and likely keep it on the sidelines of a global upswing in values of prime residential real estate.
Fast emerging from the pandemic slump, the construction industry will deliver an estimated 62,000 homes in the emirate this year and nearly 63,500 in 2022, which would be the most since 2009, Knight Frank estimates.
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