Every year, the doom mongers come out in force and say the global property bubble is finally set to burst and every year it doesn’t.
This cycle has been repeating itself since before the global financial crisis and it has been the same story in 2021, too.
Even the Covid-19 pandemic has failed to dampen people’s appetite to own property and may even have fuelled it. Lockdown restrictions have driven a “race for space” in many countries, forcing prices even higher.
Yet nothing lasts forever and there are reasons why 2022 could be sticky for global property markets.
As the fast-spreading Omicron variant threatens yet another round of lockdowns, many could be reluctant to commit to a new property.
Inflation is a bigger worry, though, with consumer price growth hitting 6.8 per cent in the US, 6 per cent in Germany and 5.1 per cent in the UK.
Everybody knows today’s property values have been pumped up by more than a dozen years of cheap finance. Affordability is an issue, with mortgages hovering around the 2 per cent mark. They may not stay that low for long, with the Bank of England becoming the first major central bank to lift interest rates on December 16, albeit to just 0.25 per cent. If others follow and mortgage rates steadily climb, demand would slump.
So, dare you take the plunge and buy a property today? Or do you sit back and wait to pick up a bargain after the long-awaited crash? It’s a tough call.
The big global cities have weathered the Covid-19 storm in surprisingly good shape. They remain centres of “collaboration, innovation and prosperity”, global real estate specialists Savills says.
It ranks New York as the world’s “most resilient city”, followed by Los Angeles, London, Tokyo, San Francisco and Paris.
Cities are also becoming greener and more liveable, while the concept of the car-free 15-minute city is gaining traction.
Forget the lure of the countryside, cities are where the money is. Urban areas produce more than 80 per cent of global gross domestic product, according to Oxford Economics. That will hit 90 per cent by 2030.
Prime property prices will rise in 2022 but the rate of growth will soften, Kate Everett-Allen, head of international residential research at Knight Frank, says.
Prime global property prices should rise 9 per cent this year and then climb another 7 per cent in 2022, Ms Everett-Allen says.
“Behemoths like New York and London look to be awakening from their slumber, with the pace of prime sales quickening and growth moving into positive territory for the first time in three and six years, respectively.”
Prime residential prices in Miami grew a world-beating 22 per cent this year and it will lead the pack in 2022, with prices expected to rise 10 per cent.
“Florida’s low tax regime, Miami’s competitive prices and the appeal of coastal living during the crisis has boosted demand,” Ms Everett-Allen says.
Second-placed Sydney should grow 9 per cent as second home buyers favour property on Australian soil, having been hit by lockdowns and travel bans.
Los Angeles should grow 8 per cent due to “record low inventory levels, strong demand for large family homes and the continued availability of low mortgage rates”, Ms Everett-Allen says.
Prime property prices will rise in 2022 but the rate of growth will soften
Kate Everett-Allen,
head of international residential research, Knight Frank
Auckland and London (up 7 per cent), Geneva and Madrid (6 per cent) and Singapore, New York and Hong Kong (5 per cent) should also perform strongly.
Positive factors include strong demand for second homes from buyers flush with lockdown savings and the low supply of attractive property, she adds.
Interest rates may rise but this will not trouble prime markets, where many buyers complete purchases in cash.
Potential headwinds include tax raids on the better off, reduced fiscal and monetary stimulus, and local measures designed to cool overheated property markets and prevent wealthy foreigners from driving out the locals.
China is the major concern, Ms Everett-Allen says, as the country’s second-largest property developer Evergrande collapses under the weight of its $300 billion debts.
“This is unlikely to kickstart widespread contagion but the direction of policy suggests more muted price growth in the medium term.”
Other forecasters are also bullish. For example, Zillow predicts US residential property prices will climb 13.6 per cent in the year to October 2022 (although that’s down from a thumping 19.9 per cent in August).
So much for predictions. The question is whether you should buy in this market. The answer is yes, provided you know what you are doing and why, Miranda John, director of international property finance at SPF Private Clients, says.
While mortgage finance is still cheap, lenders typically demand a sizeable deposit.
“Many lenders, particularly in Europe, will only advance up to a maximum of 50 to 70 per cent loan-to-value.”
Buyers must also meet strict affordability criteria and budget for purchase fees and local taxes, which can total 12 per cent of the purchase price, she says.
Plus, if you are buying overseas, remember to account for foreign exchange risk as adverse movements could push up the cost of servicing a mortgage or managing your property, Ms John adds.
Borrowers need to brace themselves for higher interest rates in 2022
Islay Robinson,
chief executive, Enness Global
Borrowers also need to brace themselves for higher interest rates in 2022. They must be sure they can afford to service their mortgage, Islay Robinson, chief executive of high-net-worth mortgage broker Enness Global, says.
With interest rates expected to rise in 2022, the sooner you organise your finance, the better, he says.
“This is particularly applicable for anyone buying off-plan as it is often possible to secure mortgages very early for new build developments.”
Mortgage rates cannot get lower but they can get a lot higher and fixing for five, 10 or even 15 years could prove highly tempting.
“We have already seen long-term fixed-rate mortgages get gradually more expensive over the last few months,” Mr Robinson says.
Everything now hangs on where mortgage rates go next. As inflation spirals, central bankers are being forced to drop the illusion that price growth is “transient”, Fawad Razaqzada, market analyst at Think Markets, says.
Yet the US Federal Reserve remains reluctant to raise interest rates. “Currently, markets expect two rate hikes in 2022, but if the Federal Open Market Committee plots a more aggressive tightening cycle, markets could be in for a surprise,” he says.
Like everything else right now, a great deal depends on Omicron. It could actually help the property market by forcing central banks to delay rate hikes.
Higher interest rates may slow soaring house prices but the impact may be lower than many anticipate, Karen Noye, mortgage expert at global wealth manager Quilter, says.
“Even if rates are hiked, demand for property still outweighs supply, so we would likely see a gradual slowing of growth as opposed to a sudden drop.”
If she’s right, the global property market crash could be delayed for yet another year.
The one threat is that inflation lets rip, forcing central bankers to taper stimulus and hike rates, which would knock property market confidence.
Buying a property is always a gamble but if you find the home of your dreams, there’s little point hanging around. Don’t buy to make a short-term profit, but choose something you would be happy to own for years and years to allow time for prices to recover from any crash.
Don’t borrow more than you can afford to repay, even if interest rates do rise. If worried, fix your mortgage at today’s record low rates while they last.
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
UAE currency: the story behind the money in your pockets
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Coming 2 America
Directed by: Craig Brewer
Starring: Eddie Murphy, Arsenio Hall, Jermaine Fowler, Leslie Jones
3/5 stars
Company%20profile
%3Cp%3EName%3A%20Cashew%0D%3Cbr%3EStarted%3A%202020%0D%3Cbr%3EFounders%3A%20Ibtissam%20Ouassif%20and%20Ammar%20Afif%0D%3Cbr%3EBased%3A%20Dubai%2C%20UAE%0D%3Cbr%3EIndustry%3A%20FinTech%0D%3Cbr%3EFunding%20size%3A%20%2410m%0D%3Cbr%3EInvestors%3A%20Mashreq%2C%20others%0D%3C%2Fp%3E%0A
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
UAE currency: the story behind the money in your pockets
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Roll of honour: Who won what in 2018/19?
West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins
UAE Conference: Winners – Dubai Tigers; Runners-up – Al Ain Amblers
Match info
Australia 580
Pakistan 240 and 335
Result: Australia win by an innings and five runs
The%20Kitchen
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EDaniel%20Kaluuya%2C%20Kibwe%20Tavares%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%C2%A0%3C%2Fstrong%3EKane%20Robinson%2C%20Jedaiah%20Bannerman%2C%20Hope%20Ikpoku%20Jnr%2C%20Fiona%20Marr%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%C2%A0%3C%2Fp%3E%0A
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Switch%20Foods%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Edward%20Hamod%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Plant-based%20meat%20production%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2034%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%246.5%20million%3Cbr%3E%3Cstrong%3EFunding%20round%3A%3C%2Fstrong%3E%20Seed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Based%20in%20US%20and%20across%20Middle%20East%3C%2Fp%3E%0A
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Qosty Byogaani
Starring: Hani Razmzi, Maya Nasir and Hassan Hosny
Four stars
Results
5.30pm: Maiden Dh165,000 (Turf) 1,600m; Winner: Al Battar, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer).
6.05pm: Maiden Dh165,000 (Dirt) 1,200m; Winner: Good Fighter, Richard Mullen, Satish Seemar.
6.40pm: Handicap Dh185,000 (T) 1,200m; Winner: Way Of Wisdom, Tadhg O’Shea, Satish Seemar.
7.15pm: Handicap Dh170,000 (D) 2,200m; Winner: Immortalised, Tadhg O’Shea, Satish Seemar.
7.50pm: Handicap Dh185,000 (T) 2,000m; Winner: Franz Kafka, James Doyle, Simon Crisford.
8.25pm: Handicap Dh185,000 (D) 1,200m; Winner: Mayadeen, Connor Beasley, Doug Watson.
9pm: Handicap Dh185,000 (T) 1,600m; Winner: Chiefdom, Mickael Barzalona, Salem bin Ghadayer
Players Selected for La Liga Trials
U18 Age Group
Name: Ahmed Salam (Malaga)
Position: Right Wing
Nationality: Jordanian
Name: Yahia Iraqi (Malaga)
Position: Left Wing
Nationality: Morocco
Name: Mohammed Bouherrafa (Almeria)
Position: Centre-Midfield
Nationality: French
Name: Mohammed Rajeh (Cadiz)
Position: Striker
Nationality: Jordanian
U16 Age Group
Name: Mehdi Elkhamlichi (Malaga)
Position: Lead Striker
Nationality: Morocco
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
Killing of Qassem Suleimani
Zodi%20%26%20Tehu%3A%20Princes%20Of%20The%20Desert
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More from Rashmee Roshan Lall
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
