Dubai property market set to hit new peak in 2023

Real estate experts expect an increase in property price and rental value amidst rising demand from HNWIs and foreign investors

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The sentiment that the property market will continue its upward momentum on the back of strong demand from end-users and foreign and local investors. — Supplied photo
by

A Staff Reporter

Published: Wed 28 Dec 2022, 2:30 PM

Dubai real estate market will continue its upward trajectory in 2023 as the property prices and the annual rent are expected to increase further amid rising demand and interest from high net worth individuals (HNWIs) and foreign investors, according to the Zoom Property Insights.

The latest data from Zoom Property Insights forecasts that Dubai property prices are expected to increase up to 20 per cent increase on average and the luxury segment will continue to dominate with 13.5 per cent year-on-year growth in 2023.

Ata Shobeiry, CEO of Zoom Property, echoes the sentiment that the property market will continue its upward momentum on the back of strong demand from end-users and foreign and local investors.

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“The Dubai property market has cemented its position as a leading real estate destination, with 2022 proving to be a remarkable year (so far) 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 communities, such as Palm Jumeirah, Downtown Dubai, Dubai Marina, JBR, etc., will continue attracting buyers and investors in the next year as well,” Shobeiry said.

High-end properties on the rise

Referring to a recent report by Knight Frank, the Zoom Property Insights said the high-end properties in Dubai will have another remarkable year, with an anticipated 13.5 per cent increase in prices next year. This is the highest increase among the top 25 foreign destinations.

Miami ranks 2nd with an expected five per cent increase in prices while Los Angeles, Paris, and New York are other prominent names on the list.

Top areas expected to remain popular in 2023

Data obtained from the Zoom Property Insights indicates that Palm Jumeirah witnessed the highest price increase of 5 per cent in the apartment sector in recent times. It was followed by MBR City, Meydan City, and Living Legends. All these communities recorded a 4.7 per cent increase in the average property prices.

For villas, the highest growth of 4.6 per cent was recorded in Emirates Hills. Mudon (4.1 per cent), Jumeriah Village Circle (3.9 per cent), and MBR City (3.1 per cent) remained other prominent areas.

For rental apartments, The Old Town, Dubailand Residence Complex, Green Community (DIP), and Downtown Dubai showed the most promising figures of 4.9 per cent, 4.6 per cent, 4.5 per cent, and 4.4 per cent, respectively.

The Sustainable City (4.9 per cent), DAMAC Hills (Akoya) (4.8 per cent), The Villa (4.8 per cent), and Reem (4.7 per cent) remained the popular choices for renting villas.

Besides the aforementioned areas Jumeriah, JBR, Arabian Ranches, and Dubai Marina are expected to drive the property market in 2023.

“Dubai's position as a leading tourist destination, reformed policies by the government, relaxation in visa rules, and an expat-friendly environment; it’s a combination of all these factors that have helped to make Dubai property market a roaring success. I believe they will continue to contribute to the sector’s success in 2023 as well,” Shobeiry concluded.

KEY TAKEAWAYS

• Average property prices and rent in the Dubai property market expected to increase in 2023

• There’s an estimated 20 per cent price increase expected in 2023

• Luxury properties to witness a 13.5 per cent price growth next year

• Palm Jumeirah, MBR City, Meydan City, and Living Legends are popular communities for buying apartments

• Emirates Hills, Mudon, JVC, and MBR City are popular communities for buying villas

• The Old Town, Dubailand Residence Complex, Green Community (DIP), and Downtown Dubai are popular areas for renting apartments

• The Sustainable City, Damac Hills (Akoya), The Villa, and Reem are popular choices for renting villas

— business@khaleejtimes.com

A Staff Reporter

Published: Wed 28 Dec 2022, 2:30 PM

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