- We anticipate an increase in the number of Russian nationals moving to the UAE in Q4 due to the mobilization / conscription that was announced by Vladimir Putin last week. Flights from Moscow to Dubai were somewhere between $5,000 – $10,000 in the days following this announcement.
- KP View – This is likely to have a positive impact on the Dubai market, especially for sea-facing properties.
- Interest rates increased by 75-basis points in the US, which will make the cost of borrowing even more expensive in the UAE.
- KP View – This is increasingly likely to have a negative impact on certain communities where there is a higher number of mortgaged buyers, such as villa communities in the AED 2,000,000 – 6,000,000 price range.
- Global stock markets corrected further last week. The S&P 500 was down nearly 5%, due to the Fed increasing interest rates and predicting they will keep raising them until 4.6% next year. They said they will keep going despite economic damage until inflation is back down to 2%.
- KP View – if there is a global recession, it is unlikely that Dubai will escape without any consequences for the local real estate market – although there is usually a delay in this happening.
- The emergency budget in the UK, with significant tax cuts in an attempt to boost growth, led to a crash in the value of the Pound because investors feel this is reckless and will make the inflation problem even worse. The pound currently sits at historic lows below AED 4, and is moving towards parity to the dollar.
- KP View – This is likely to discourage Brits from buying property here, and Brits who already own property might see this as a good opportunity to sell and move money back home.
