IN FOCUS: THE AFFORDABILITY OF DUBAI’S RESIDENTIAL MARKET

With rising interest rates, the upward creep in inflation and rising base rates, households have undoubtedly seen their outgoings increase over the last two years. The wave of international UHNWI-linked capital targeting the city has primarily driven this solid price growth. When it comes to affordability, however, for most of the city, the ratio of household incomes to house prices remains ‘affordable’, i.e., below the internationally accepted ratio of six times the annual household income, excluding the locations we class as prime, as illustrated below.