With prices rising by almost 1.8% in October and a similar trend in November, Dubai's real estate market is set to perform strongly in the fourth quarter and at the end of the year as investors and end users continue to invest in the city's real estate sector.

The latest data from Zoom Property Insights shows that the average property price in Dubai has reached Dh1,070 per square foot. It also disclosed that prices of apartments and villas have increased by more than 8.5 percent and 13 percent respectively so far this year.

Among other sectors, it is the luxury residential segment that dominates the real estate market.

High net worth individuals and foreign investors continue to invest in this sector, resulting in a significant boost.

According to Zoom Property Insights, there was a significant growth of 88.9% in luxury homes between Q3 2021 and Q3 2022.

This marks the highest growth globally, with Miami and Tokyo ranking second and third with 30.8% and 17% growth, respectively.

Ata Shobeiry, CEO of Zoom Property, believes that Dubai's prime locations will also continue their upward momentum in 2023.

"2022 proved to be a great year for the luxury residential sector and this trend is expected to continue in 2023 as well. The launch of various new projects featuring ultra-high-end properties will continue to attract high net worth individuals and foreign investors," he said.

Jumeirah, Downtown Dubai and Palm Jumeirah, which saw price increases of more than 3.3 percent, 2.5 percent and 2 percent respectively, remain the top choices for apartments in Dubai.

DIFC, MBR City, Dubai Hills and Business Bay are other popular areas that have earned the interest of investors and end users in Dubai apartments.

The Palm Jumeirah continued its dominance in the villa segment with property prices increasing by almost 3%.

Villas in Jumeirah also showed an increase of over 3.5%.

In addition to this, District One, MBR City, Dubai Hills and The Meadows are all attracting buyers of villas.

Dubai's prime locations will continue to attract high net worth individuals and millionaires, with prices expected to remain on an upward trend in 2023.

However, prices in the mainstream residential market are expected to see steady growth over the next year.

For 2023, Zoom Property Insights forecasts strong double-digit growth of around 15% in the emirate's prime areas, including communities such as Palm Jumeirah, Emirates Hills and Jumeirah Bay Island.

It sees average prices in the emirate's mainstream residential market growing by 7% in 2023.

"Given the current performance of the real estate market, this figure certainly looks achievable.

Areas known for luxury homes as well as affordable housing are performing very well, paving the way for a strong finish in 2022 and an equally strong start in 2023," Shobeiry concluded.