Federal Reserve Chair Jerome Powell said that the continued strength of the U.S. economy could require further interest rate increases.

If the Federal Reserve raises interest rates, it could lead to an increase in mortgage rates in the UAE as well. This would mean that it would become more expensive for home buyers in the UAE to borrow money to finance their home purchases.

It is possible that if interest rates rise, it could lead to an increase in mortgage rates, which could make it more expensive for people to buy homes. This could result in an increase in demand for rental properties, which could drive up rental prices.

According to Bayut’s 2022 Dubai Rental Property Market Report, rental property prices in Dubai have significantly increased across the board in 2022. Rental costs have experienced upticks of up to 23.4% in the affordable segment, while the luxury segment reported increases of up to 54% in rental costs. The most significant impact was visible in prices for properties in areas with limited inventory, such as Dubai Hills Estate, Palm Jumeirah, and Jumeirah.

However, it’s important to note that many factors can influence rental prices, and they don’t always move in lockstep with interest rate decisions.