|
Unique Properties, one of Dubai’s leading real estate agencies, predicts that Dubai's prime residential market is set to experience the world's strongest growth in 2023. High-end properties in the cosmopolitan city will remain in strong demand and prices are likely to end the year around 50% higher than in 2021.
Dubai’s prime residential market has been a global outlier with record price growth this year. It is poised to continue on this trajectory into the new year with the UAE’s proven stature as one of the safest places in the world to live. Down from the 2.7% growth rate that was predicted halfway through 2022, the emirate’s prime real estate sector is still projected to rise by 2% on average in 2023, and aggregate growth for next year is expected to be higher than what has been recorded in six of the past 10 years.
Despite global instability, rising inflation rates, and chatter of a looming recession, the upward momentum of Dubai real estate is supported by appealing incentives such as an extremely low rate of tax, long-term visas, and excellent connectivity. Additionally, with the influx of GCC tourists who have been increasingly entering the region as a result of the Qatar World Cup, it is predicted that the UAE will see 40% growth in high-net-worth individuals (HNWI) residing in Dubai over the next decade.
During the past year, Dubai real estate, as a whole, has flourished with prices up by over 60%. Additionally, in a 12-month timeframe from October 2021 to October of this year, Dubai’s prime real estate prices rose 89% . Prices will continue to rise in the city for the foreseeable future but increases will
slow to 4.5% and 3.0%, respectively in 2023 and 2024 . However, the market will remain stable and offer investors a good inflation hedge with recent data citing European and Russian buyers, respectively, representing the largest group of investors in Dubai.
Arash Jalili, Founder and Chief Executive Officer of Unique Properties, UAE HQ, said: "With the US dollar strengthening over the last six months, and the UAE dirham being fixed to its value, buyers from the UK and EU will continue to enjoy the benefit of relative affordability in Dubai’s real estate market as we move into 2023. November sales transactions in the UAE reinforce this notion as it was a record-breaking amount propped up by the well-being of the country’s economy. This trend should continue for the next year with Dubai properties being one of the most preferred long-term investment assets around the world."
The UAE’s deft handling of the pandemic has enabled a quicker recovery than that of most countries. It is one of the more resilient economies in the world and experts have predicted that it will grow by 4.3% in 2023 to become the fastest-growing economy in the Arabian Gulf . Dubai’s mainstream residential market is expected to contribute to this growth and simultaneously be a beneficiary by registering price increases of five to seven per cent by the end of this year and a similar rate of growth in the following year. Unique Properties’ extensive market knowledge is steering several transactions across Dubai’s residential off-plan segment; the full-service award-winning agency facilitates resale property, sales and commercial, and rental transactions with expert international teams.
|
New
