Dubai's real estate market will remain resilient despite fears of a global recession or a slowdown in major economies this year, an expert said.

Hatem ElSafty, founder and CEO of Business Link, a Dubai-based business set-up consultancy, said the outlook for the real estate market was bright due to rising demand from high net worth individuals (HNWIs) and millionaires, particularly in the luxury sector.

"As a business set-up consultancy, we have seen an increase in real estate and tourism licenses issued this year, and Dubai's strong portfolio has attracted foreign investors and entrepreneurs to the emirate's booming real estate sector as they look to establish their business operations in the UAE," said ElSafty.

According to Zoom Property Insights, the luxury property market will continue to grow at an annual rate of 13.5 per cent in 2023. These figures show that the real estate market shows no signs of slowing down, with interest from investors and buyers alike rising sharply.

Dubai's real estate market has been a major driver of economic growth in the UAE over the past few decades, as it has attracted investors from around the world with its luxury developments and tax-free environment.

In recent years, the sector has experienced significant growth, with property prices soaring and new residential and commercial projects popping up. According to Dubai real estate agency Unique Properties, the market size exceeded Dh240 billion in 2022 - an increase of 61 per cent from 2021.

Industry experts believe that the hype in the real estate market can be attributed to several factors, including the country's successful Covid-19 vaccination campaign, Expo 2020 and the UAE's newly implemented long-term visa regime. These factors have boosted the country's overall economic growth, providing a favourable environment for real estate investment.

There are some concerns that the growth of the UAE's real estate market could be affected by the expected global recession in 2023. But the latest figures from Property Finder suggest that such fears are unfounded, as the sector started the New Year on a high note, with property transactions up 178 per cent in January and sales transactions up 128 per cent.

"Dubai's real estate market is experiencing a surge in activity and speculation, with demand for properties at an all-time high. investors and buyers from across the globe are flocking to the country to take advantage of the attractive investment opportunities and favourable market conditions," ElSafty said.

"The real estate boom is not limited to one particular market segment, as both residential and commercial properties are experiencing high demand. In particular, the luxury residential segment is seeing a significant spike, with high net worth individuals seeking exclusive high-end properties," said the CEO of Business Link.

Dubai's property market has always been a popular choice for international investors, with its favourable tax laws, booming economy and world-class infrastructure. However, demand for property has soared to unprecedented levels in recent months, resulting in record breaking sales figures.

Property developers are taking advantage of the current market conditions with several major projects underway, including the ambitious 'Dubai Creek Harbour' and 'Heart of Europe' developments. These projects are designed to attract investors from around the world and further enhance Dubai's position as a major investment destination.

Despite the hype and enthusiasm surrounding the real estate market, experts advise investors to exercise caution and conduct due diligence before making an investment decision. As with any market, there are inherent risks and investors should seek professional advice to make an informed decision. Now, especially after the global unbundling.

"The hype in the real estate market is testament to the country's overall economic growth and attractive investment opportunities. the market is expected to continue its upward momentum in the coming months as global investors and developers continue to pay attention," said ElSafty.