Continued demand and interest from high net worth individuals (HNWIs) and foreign investors will keep property rents in Dubai high in 2023, according to a new report.

Property prices in the emirate are expected to grow by as much as 20 per cent on average, with the luxury segment continuing to dominate, with a year-on-year growth rate of 13.5 per cent in 2023, according to Zoom Property Insights.

"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," said Ata Shobeiry, CEO of Zoom Property.

Popular neighbourhoods such as The Palm Jumeirah, Downtown Dubai, Dubai Marina and Jumeirah Beach Residences (JBR) will also continue to attract buyers and investors in the next year, he said.  

In a recent report, real estate consultancy Knight Frank said price growth for prime real estate in Dubai could slow to 13.5 per cent in 2023, which "remains the highest growth rate for prime markets globally".

Dubai's safe haven status, the exceptional diversity of international ultra-high net worth individuals looking for luxury second homes, coupled with the government's world-leading response to the pandemic, which has spurred confidence among business investors, are driving the value of prime real estate, the consultancy said.

According to Property Finder's recently released Zeitgeist 2022 report, the emirate's property market broke all records in 2022, with 88,028 sales registered as of November 2022, up 46% on 2021 and 38% above the market peak in 2013.