Owing to strong demand by high-net-worth individuals and foreign investors, Dubai real estate market is poised to see another high before the end of the year 2022, according to a majority of industry experts. Not just a strong 4th quarter is predicted but a positive and powerful beginning in the year 2023 is also proposed for the Dubai realty market. With an average increase of nearly 1.8% in Dubai property prices in October and a similar trend recorded in November, Dubai real estate market will close this year on a stronger note.
Luxury properties – A burgeoning segment of Dubai real estate
The latest data obtained from the Dubai Land Department (DLD) indicate that investors and end-users both continued to invest in Dubai real estate sector throughout 2022. This continuous investment leads to an increase in prices and escalating prices of both apartments and villas are driving the growth of Dubai real estate sector. Also, a reasonable increase in prices for affordable properties for sale in Dubai is recorded, which led Dubai property market towards a strong 4th quarter and end to the current year.
On the contrary, the prices of luxury properties for sale in Dubai also continued to increase in 2022, fuelled by the rising demand from high-net-worth individuals and wealthy foreign investors. A significant growth has been recorded in the prices of luxury properties between the period of Q3, 2021 and Q3, 2022. A number of Dubai prime areas remained in higher demand in 2022, with property prices up by 90% including Jumeirah, Downtown Dubai, Dubai Marina and Al Barari. The trend is unstoppable and expected to continue in Q4, 2022 and the upcoming year as well.
A majority of estate agents in Dubai predict a bright and steady start of 2023 based on the robust demand that conduces the launch of luxury projects in Dubai.
Dubai real estate continues growth in Q4, 2022
Along with the price of properties for sale in Dubai, the data indicates a substantial increase in the sales volume as well. The official data shows a roughly 14 per cent quarter-on-quarter increase in sales volume during Q3, 2022. 22,423 real estate transactions were recorded in the second quarter, which jumped to 25,496 transactions in Q3, 2022. Interestingly, Dubai real estate market touched AED30 billion mark this November, in terms of sales volume and with two weeks still left for Q4 to end, the real estate transactions have already crossed the 25,000 figure.
Q4 is expected to surpass the previous three quarters not just in the numbers of real estate transactions but also in terms of value. AED58.99 billion were estimated for property transactions in Q2, while the value of transactions reached AED69.49 billion in Q3. Dubai real estate sector has recorded a growth not just in terms of the numbers of transactions but also in the value of transactions, which is nearly 18 per cent. The same successful growth pattern is predicted for Q4, which has already crossed the AED69 billion mark, with 2 weeks left in Q4.
Real estate growth momentum to continue
According to sales experts at HFRE, the strong performance of Dubai real estate sector throughout 2022 makes a base for a strong start to 2023. Seeing the continuously increasing queries for properties for sale in Dubai from Q1 to Q3, we can state that performance of the fourth quarter will also be incredible. The prices of both luxury and affordable properties are set to increase, making Dubai real estate a more attractive sector for investment.
Depending upon your budget and personal preferences, you can finalize an apartment or villa anywhere in Dubai. However, if you are buying properties for sale in Dubai for investment purpose, we suggest you look at these 4 neighbourhoods that promise a high return on investment in Dubai. It is also true that the luxury real estate segment will continue dominating the Dubai real estate sector, as it has become high-net-worth individuals and foreign millionaires’ favourite investment market.
That is why, real estate experts predict a substantial increase in the prices of properties for sale in Dubai. According to the recent report published by Knight Frank, a 13.5% price growth is predicted for properties for sale in Dubai. It is the highest and most significant growth across the world as an average of 2% price growth is expected on average across other established real estate markets. It is the strongest growth to be expected in 2023, whereas cities like New York, Paris and Singapore will only achieve single-digit growth.
Popular areas for apartments in Dubai
The most popular areas for luxury apartments for sale in Dubai are Jumeirah, Downtown Dubai, and Palm Jumeirah, with over 3.3 per cent, 2.5 per cent, and 2 per cent price increase, respectively. Palm Jumeirah is one of the most popular neighbourhoods across the world and luxury townhouses, villas and apartments can be found in abundance on this archipelago. The properties for rent start at AED900,000, while prices for villas begin at AED3,900,000.
Popular areas for villas in Dubai
The most popular areas for luxury villas for sale in Dubai are Palm Jumeirah, Jumeirah, MBR City and Dubai Hills. Palm Jumeirah has dominated the villas segment of Dubai real estate sector as well with a nearly three per cent increase in property prices. Villas in Jumeirah also showed a growth of over 3.5 per cent.
What does 2023 hold for Dubai real estate sector?
The prime areas in Dubai will continue to attract high-net-worth individuals and foreign investors, and resultantly prices are also expected to sustain an upward graph in 2023 as well. On average, Dubai real estate market is expected to follow a steady growth in terms of prices in 2023.
A majority of estate agents in Dubai forecast double-digit growth for properties located in prime areas in the emirate, encompassing Palm Jumeirah, Jumeirah Bay Island, Downtown Dubai and Emirates Hills. The property prices will see a spike of 15 per cent on average in these areas, while the mainstream neighbourhoods or affordable areas will experience a nearly 7% increase in property prices.
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The average returns on investment are spectacular and can entice any investor and end-user to buy properties for sale in Dubai. If you are also one of them looking for an avenue to invest in Dubai, call the market experts now at +971 4876 2473 or write your query in detail at info@hfre.ae. We assure you that we will not just help you reach your dream property but also help you make a well-informed investment decision.
