Dubai's real estate market is set to reach a new peak in 2023, with property prices and rental values expected to surge, amid rising demand from high net worth individuals and foreign investors.
According to Zoom Property Insights, prices are expected to rise by 20 per cent next year, while luxury properties will witness a 13.5 per cent increase in prices.
Ata Shobeiry, CEO of Zoom Property, said that the real estate market will continue its upward momentum on the back of strong demand from end users and foreign and local investors.
"The Dubai property market has cemented its position as a leading real estate destination and 2022 is proving to be an exceptional year for the sector. 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 next year as well," Shobeiry said.
According to global real estate consultancy Knight Frank's 2023 Gold Forecast report, Dubai's prime residential prices are set to see the strongest growth in the world in 2023.
Prices are set to rise by 13.5 per cent next year as an increasing number of foreign buyers and high net worth individuals show strong interest in the market.
According to the report, Dubai and neighbouring regions such as The Palm Jumeirah, Emirates Hills and Jumeirah Bay Island topped the client list. Miami was second on the list with a forecast annual percentage change of 5 per cent, followed by Dublin, Los Angeles and Lisbon.
Dubai's relative affordability and premium rates of around $800 per square foot make the city one of the world's most affordable markets for luxury homes, says the Knight Frank report.
According to the Financial Times, Dubai's rich lifestyle, visa scheme, real estate and other noteworthy attractions have attracted investors, particularly the elite.
This year, a three-storey penthouse at Atlantis The Royal was sold for Dh180 million." 2020 and 2021 are incredible years," Philippe Zuber, chief executive of its developer Kerzner International, was quoted as saying.
Leign Borg, managing partner of Luxhabitat Sotheby's International Realty, said Dubai has always attracted millionaires and billionaires, but "now that they are moving here full-time, they want the biggest and best homes."
Dubai is set for another extraordinary year for high-end property, with prices expected to grow by 13.5 per cent next year, according to a report by Zoom. This is the highest increase among the top 25 foreign destinations, the report said.
Scaling data shows that The Palm Jumeirah has witnessed the highest price growth in the flat sector of 5.0 per cent 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.
Zoom reported that Palm Jumeirah, MBR City, Meydan City and Living Legends were the top neighbourhoods to buy condominiums, while Emirates Hills, Mudon, JVC and MBR City were the top neighbourhoods to buy villas.
Old Town, Dubailand Residential, Green Communities (DIP) and Downtown Dubai are popular areas for renting flats. Sustainable City, DAMAC Hill (Akoya), The Villages and Reem are popular choices for renting villas.
"Dubai's status as a major tourist destination, the government's reform policies, the relaxation of visa rules and the expatriate friendly environment; it is the combination of all these factors that has helped make the Dubai real estate market a huge success. I am confident that they will continue to contribute to the success of the sector in 2023 as well," Shobeiry said.
