According to Zoom Property Insights, the Dubai real estate market will continue a robust growth trend in 2023, with real estate prices and the annual rent likely to climb further in due to higher demands and interest from HNWIs and international investors.
Last year in 2022, Dubai was one of the few places to profit from widespread geopolitical unrest. Russia’s business elite, including wealthy investors and executives, flocked here in droves this year, making it the country with the largest influx of financial assets.
Luxury Property Market Continues to Shine as January 2 hit the Highest Sales of the Week
On the second day of the first week of the new year, the real estate market in Dubai observed the highest sales, with transactions totaling AED 2.02 billion. There were a total of 457 sales transactions, including 79 mortgage transactions for AED 202.47 million, and 11 gift transactions worth 85.32 million in the world of the real estate market in Dubai. Moreover, Akaya Oxygen property worth AED 328,606 tops the list of sales, consisting of flats in Damac Hills (2) – Viridis, followed by Al Furjan and Al Khail Heights.
According to DLD mortgage transaction details, the top 5 transactions on January 2, 2023 consists of: Arjan flat comprising 94,523 per Sq.Mt value was sold for AED 6,335,707 (total transactions 8), Business Bay flat comprising 246,219 per Sq.Mt value was sold for AED 18,579,878 (total transactions 11), Sobha Heartland flat comprising 499,338 per Sq.Mt value was sold for AED 38,656,501 (total transaction 24), Meydan One flat comprising 275,513.79 per Sq.Mt value was sold for AED 105,919,878 (total transactions 9), and Jumeirah Village Circle flat comprising 471,893.59 per Sq.Mt value was sold for AED 26,806,575 (total transactions 42).
A Record-breaking AED 590.93 Million was being Transacted in Mortgage Deals on January 5
There were a total of 516 sales transactions worth AED 1.73 billion, 68 mortgage transactions worth AED 590.53 million, and 26 gift transactions at AED 503.85 million on Thursday. If mortgage deals are taken into account, the areas of Bluewaters, Burj Khalifa, Business Bay, and Discovery Gardens were the trendiest. In comparison, Al Furjan, Burj Khalifa, Business Bay, Damac Hills, and Dubai Marina dominated in regard to gift sales for the week.
Dubai Land Department (DLD) data shows that on 4 January 2023, over AED 1.02 billion was transacted in the city’s real estate market.
The DLD reports that a total of 436 transactions were completed, with a value of AED 1.02 billion. This includes 153 mortgage transactions, valued at AED 402.91 million, and 43 gift transactions, valued at AED 132.31 million.
Dubai unveils an $8.7 trillion economic strategy
To boost trade, investments, and Dubai’s reputation as a worldwide hub, the emirates have unveiled an economic strategy. In the next ten years, Dubai wants to quadruple its economy and rank among the “top 3 economic cities in the world,” according to Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai. Dubai has implemented a flurry of reforms in recent years to increase its appeal as a place to live and invest in foreigners and multinational corporations.
Dubai’s Property Market is Expected to Rise in Value by 7-10% in 2023
According to a survey by ValuStrat, villa and apartment prices in Dubai continued to show indications of stabilization by the end of 2022, considering the real estate activity report for the last week of 2022, they are still expected to register a citywide growth of roughly 7% to 10% this year due to strong demand for top properties for sale.
For the last four months of 2022, the monthly increase in the ValuStrat Price Index (VPI), which measures the performance of the market for residential properties across the emirate, averaged less than 1%. Even in freehold areas, property values changed little to no during the past year.
While it’s possible, that prices are leveling out, ValuStrat projects that residential property prices in the city as a whole will increase by an average of 7% to 10% by the end of the year.
The luxury market, including villas, would be a major factor in this. The rest of Dubai’s residential market may experience negative growth in some places where additional stockpile is anticipated and has already reached possible price limitations.
In the final three months of 2022, the number of off-plan sales jumped by 112.1% to 15,071, while the number of ready-to-move-in sales grew by 37.3% to 11,165. Moreover, Dubai property transactions recorded sales of AED 6.28B for December’s 3rd week.
Due to the easing of travel restrictions in China, a key market for Dubai’s tourism industry, the emirate is anticipating a rise in arrivals this year. The next COP28 will bring a lot of attention to Dubai, since it will be hosting more than 80,000 participants and 140 heads of state or government.
ValuStrat predicts that the newly unveiled UAE Tourism Strategy 2031 will increase investment in the tourism industry overall, encompassing the tourism, transport, and service industry.
Top Regions Predicted to Maintain Popularity in the World of Real Estate Dubai 2023
According to data from Zoom Property Insights, Palm Jumeirah recently had the apartment market’s largest price increase of 5%. MBR City, Meydan City, and Living Legends were the ones that followed it. The average property prices in each of these areas increased by 4.7%.
Emirates Hills experienced the highest growth of 4.6% for villas. Mudon (4.1%), Jumeriah Village Circle (3.9%), and MBR City (3.1%) continued to be other significant regions.
The Old Town, Dubailand Residence Complex, Green Community (DIP), and Downtown Dubai exhibited the most encouraging numbers for rental units, with respective rates of 4.9%, 4.6%, 4.5%, and 4.4%.
The Sustainable City (4.9%), DAMAC Hills (Akoya) (4.8%), The Villa (4.8%), and Reem (4.7%) were the most popular places to rent villas.
Jumeriah, JBR, Arabian Ranches, and Dubai Marina are also anticipated to be key real estate markets in 2023.
The success of the Dubai real estate market can be attributed to a number of factors, including the city’s status as a top tourist destination, the government’s revised regulations, the government’s reduction of visa requirements, and the city’s expat-friendly climate. All of these elements will undoubtedly help the industry succeed in 2023 as well.