Dubai real estate started showing recovery signs by the end of 2021 and continued its growth track throughout 2022. Interestingly, the sector has neither lost its charm nor lost its momentum over the course of a year and if property pundits’ predictions are to be believed, it is expected to observe this thrust in 2023 as well. The rise can be validated with all the right reasons including the country’s sturdy response to contain the coronavirus at its peak, the opening of international borders, holding a global event – Expo 2020 and resultantly making it one of the best places to live.
Dubai – A safe haven
Dubai real estate has emerged as a safe destination in 2022 due to the increased global recessional crisis and looming economic uncertainty. However, for this market to sustain its growth and this year’s momentum, it needs to keep its charm alive for foreign high-net-worth individuals. Developers also believe in this trend to continue in 2023, thus they are busy putting considerable resources into new affordable and luxury real estate launches.
In 2022, a substantial inflow of investment funds into the local real estate market was from international high-net-worth individuals, who invested in luxury properties for sale in Dubai. With no bubble risk reported for Dubai property market, it will continue to be a place where investments are secure, the surroundings are safe and the environment is conducive for conducting business operations.
Luxury properties in Dubai – A strong segment
The luxury real estate segment in Dubai remained one of the most favourite investment segments in 2022. According to a report by Knight Frank, real estate experts forecast a price growth to reach 13.5 per cent in 2023. While the price growth is expected to rise by 2 per cent on average across the major real estate markets in the world. Dubai’s prime property sector is already inching towards $100 million deals, where several luxury properties are priced at AED300 million and more. Therefore, prices for luxury properties for sale in Dubai are recorded to rise at an incredible rate.
The prices for luxury properties in Dubai located in the areas of Palm Jumeirah, Emirates Hills and Jumeirah Bay Island strengthen with a growth rate of 29 per cent in Q3, 2022. The reasons for the tremendous increase in property values can be attributed to numerous factors including a shortage of new supply and a strong inflow of high-net-worth individuals targeting Dubai for luxury and ultra-luxury second homes. Based on the escalating prices, increase in demand and burgeoning share of luxury properties in Dubai, it is clear that Dubai prime areas are in higher demand with property prices up by 90%.
According to the report published by Knight Frank, real estate experts forecast the strongest growth for major cities across the globe including Paris, New York and Singapore will only be single-digit growth for 2023. Without focusing much on the availability of luxury properties for sale in Dubai, it is revealed that these properties will remain in higher demand and prices will also see a 50% increase. In short, after a strong 2022, the peak of demand for properties for sale in Dubai will be observed in 2023.
November 2022 – A promising month for Dubai real estate
When it comes to monthly transactions in Dubai real estate, November proved to be another promising month in 2022. The real estate transactions in November 2022 are valued at AED30.83 billion in total, with a total number of transactions crossed the 11,000 mark.
According to official data released by the Dubai Land Department (DLD), 11,102 properties for sale in Dubai were recorded in November. It shows investors’ unshakeable confidence in Dubai real estate market and its unwavering commitment to keep investors’ investment safe. Based on all these transactions recorded in the past 11 months of this year, it is clear that December 2022 will also be another record-breaking year for the Dubai real estate market and a beginning of a new era.
Upon fractional analysis, we observed that 8,535 properties in Dubai were sold that included both apartments and villas. While, 1,684 plots were sold that potential buyers bought to hold and sell in future or to build customized homes. Akoya Oxygen in DAMAC Hills 2, Al Barari, Al Barsha South and Al Furjan remained the top most desirable neighbourhoods for investment throughout this month. Out of all these areas, 145 – the most numbers of transactions were recorded in Al Furjan.
An incredible increase in cash purchases is recorded, accounting for over 80 per cent of the total transaction value. A majority of estate agents in Dubai are of the view that with cash purchases dominating Dubai’s luxury residential market, it is unlikely to see demand decrease in the upcoming year. However, the only thing that Dubai can face is if the developers fail to deliver new projects at a fast rate that was observed previously.
Register your interest
Seeing the interest of foreign investors in the Dubai real estate market both in luxury and affordable properties in Dubai, you may also be tempted to invest in this world’s best city. To find out your investment options and to register your interest in Dubai real estate market, you can give us a call +971 4876 2473 or can also write us at info@hfre.ae, and one of our representatives will answer your query in the best possible way.
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