Dubai's 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. Property prices in the emirate are expected to increase by as much as 20% on average, while the luxury segment will continue to dominate, with 13.5% year-on-year growth in 2023, data from Zoom Property Insights forecasts.
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. High-end properties in Dubai will have another strong year, with an anticipated 13.5% increase in prices next year. This is the highest increase among the top 25 foreign destinations. For villas, the highest growth of 4.6% was recorded in Emirates Hills. Mudon (4.1%), Jumeriah Village Circle (3.9%), and MBR City (3.1%) remained as other popular destinations.
Why it matters
Throughout this year, a considerable inflow of funds into the local property market was from global investors homing in on UAE’s status as a safe haven. Adding to this, even before the situation with Ukraine, Dubai has always been a favourite destination for Russian investors and tourists. Russians have always flocked to the emirate during winter to enjoy the weather and the beaches. What is clear is that ‘Brand Dubai’ and Brand UAE’ are all key driving factors in investors' minds.