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Dubai realty set to hit new peak in 2023

Rising demand from high net worth individuals and foreign investors will drive the property sector growth next year, experts say

Dubai's property market is set to hit a new peak in 2023 on the back of an expected surge in property prices and rental value amid rising demand from high net worth individuals and foreign investors.

Next year, an estimated 20 per cent price increase is expected while luxury properties will witness a 13.5 per cent price growth, according to the Zoom Property Insights.

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

“The Dubai property market has cemented its position as a leading real estate destination, with 2022 proving to be a remarkable year 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.

According to global property consultancy Knight Frank’s 2023 Prime Prediction report, Dubai’s prime residential prices are set to see the strongest growth globally in 2023. Prices are set to rise 13.5 per cent next year as more and more foreign buyers and high-net-worth individuals are showing keen interest in the market.

As per the report, Dubai, along with neighbourhood areas such as The Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, are high on customers’ lists. Miami is second on the list with a forecast annual percentage change of five per cent, followed by Dublin, Los Angeles and Lisbon.

Knight Frank’s report said Dubai’s relative affordability along with prime home prices of around $800 per square feet make the city one of the most affordable luxury residential markets in the world.

According to a report by the Financial Times, Dubai’s rich lifestyle, visa schemes, real estate among other noteworthy attractions have roped in investors, especially the elite.

This year, a three-floored Atlantis The Royal’s penthouse was sold for Dh180 million. “2020 and 2021 have been incredible years,” said Philippe Zuber, chief executive of Kerzner International, its developer, was quoted as saying.

Luxhabitat Sotheby’s International Realty executive partner Leign Borg said Dubai has always attracted millionaires and billionaires, but "now they’re moving here full time and they want the biggest and best homes".

According to the Zoom report, 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, said the report.

Zoom data indicates that Palm Jumeirah witnessed the highest price increase of 5.0 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.

Palm Jumeirah, MBR City, Meydan City, and Living Legends are popular communities for buying apartments while Emirates Hills, Mudon, JVC, and MBR City are popular communities for buying villas, the Zoom report said. 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.

“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 said.

— issacjohn@khaleejtimes.com