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It will always go up. That is what many parents have told their children when it comes to buying a house, built on the long term belief in the real estate market and the idea that housing is a safe investment. For decades people have been encouraged to save money and buy property as a cornerstone of financial security. However, the combination of rising house prices and the broader cost of living has made this exponentially harder for the average person to achieve.
Like any asset class, housing moves in cycles. Over the long term it trends up and to the right, but that does not mean the path is smooth. There are periods of volatility and corrections along the way, something that has become very evident in recent days.
No one is disputing the value of owning a house or the asset itself. Property ownership remains a major financial goal for many people. But like every other market, real estate is not immune to volatility, and the past week has been a clear example of that.
Dubai in recent years has become an expat’s dream destination. Whether it is escaping colder climates, favourable tax conditions, or the networking opportunities within a rapidly growing global hub, many people have relocated there. As a result, the real estate market has rallied significantly, something clearly reflected in the Dubai Financial Market Real Estate Index (DFMREI). However, due to the region’s geopolitical sensitivity and the ongoing conflicts in neighbouring countries, the DFMREI has taken a significant hit over the past week.
