Dubai's real estate market is set to continue its upward momentum in 2023 amid rising demand and interest from high net worth individuals (HNWIs) and foreign investors, as property prices and annual rents are expected to increase further, according to Zoom Property Insights.

The latest data from Zoom Property Insights predicts that property prices in Dubai are expected to grow by an average of 20%, with the luxury segment continuing to dominate, with a year-on-year growth rate of 13.5% in 2023.

Ata Shobeiry, CEO of Zoom Property, agrees that the real estate market will continue its upward momentum on the back of strong demand from end-users as well as foreign and local investors.

"The Dubai property market has cemented its position as a leading real estate destination and 2022 is proving to be a compelling year for the sector (so far). It is expected to end on a strong note, paving the way for an even stronger 2023," he said.

"I believe popular neighbourhoods such as The Palm Jumeirah, Downtown Dubai, Dubai Marina, JBR and others will continue to attract buyers and investors in the next year as well," Shobeiry said.

Referring to a recent Knight Frank report, Zoom Property Insights said Dubai is set for another banner year for high-end property, with prices expected to rise by 13.5 per cent next year. This is the highest increase among the top 25 foreign destinations.

Miami came second with a projected price increase of 5%, while Los Angeles, Paris and New York were the other key names on the list.

Top regions expected to remain popular in 2023

Data obtained from Zoom Property Insights shows that Palm Jumeirah has witnessed the highest price growth of 5% in the condominium sector in recent times. This was followed by MBR City, Meydan City and Living Legends. all of these communities saw a 4.7% increase in average property prices.

In terms of villas, Emirates Hills recorded the highest growth of 4.6 per cent. Mudon (4.1 per cent), Jumeriah Village Circle (3.9 per cent) and MBR City (3.1 per cent) remained the other standout areas.

In terms of rental flats, Old Town, Dubailand Residential, Green Community (DIP) and Downtown Dubai show the most promising figures at 4.9%, 4.6%, 4.5% and 4.4% respectively.

Sustainable City (4.9%), DAMAC Mountain (Akoya) (4.8%), Villas (4.8%) and Reem (4.7%) remain popular choices for rental villas.

In addition to the aforementioned areas, Jumeriah, JBR, Arabian Ranches and Dubai Marina are expected to drive the real estate market in 2023.

"Dubai's status as a major tourist destination, the government's reform policies, the relaxation of visa rules and the expat-friendly environment; it is the combination of all these factors that has helped make the Dubai real estate market a roaring success. I am confident that these factors will continue to contribute to the success of the sector in 2023 as well." Shobeiry concluded.