The real estate market in Dubai has expanded rapidly during the past few years. The development of Dubai’s real estate market is anticipated to persist through 2023. There has been any new supply added to the market, so it is plausible to foresee a slow and steady 20–25% annual increase in property values.
Since there is still a significant demand for real estate in Dubai, the arrival of new construction will be gradual. During the last ten days, ending 25 January 2023, real estate and property deals amounted to almost AED 9.40 billion. There were a total of 3,722 transactions consisting of:
- 2,834 units
- 328 buildings
- 560 lands
Flats in Akoya Oxygen, in areas of Damac Hills Avencia and Damac Hills Viridis, was sold for AED 3,833,900, another hotel apartment in Akoya Oxygen, Damac Hills Viridis, was sold for AED 1,157,410, and a third top sale in the past ten days was also recorded in Damac Hills Avencia, flat that went for AED 440,000, making up the top three sales in the past ten days. Akoya Oxygen also recorded the highest sales in the second week of January, as seen in the real estate deals for the week ending on January 13, 2023.
A total of AED 2.82 billion was mortgaged in the past ten days of January, with the most expensive being flats in Al Barari, Seventh Heaven – Ashjar, which was mortgaged for AED 6,792,800.
Overall, AED 1.68 billion worth of property was gifted to first-degree relatives with 147 transactions.
Luxury Real Estate Market UAE Recorded Highest Sales on January 25th
The real estate market in Dubai saw higher revenue of AED 1.45 billion from 16th January to 25th January. The top three sales on 25 January 2023, according to DLD mortgage transaction details, are as follows:
- Akoya Oxygen hotel apartment, Damac Hills Viridis, with a per-square-meter value of 8,775 sold for AED 342,410 (total transaction 1).
- Al Furjan flat, PG Upperhouse, with a per-square-meter value of 9,601 sold for AED 660,00 (total transaction 1).
- Al Furjan flats, Avenue Residence 2 and Aziza Samia Residence, with a per-square-meter value of 18,135 sold for AED 1,020,000 (total transactions 2).
Bright Future Lies Ahead of Dubai’s Real Estate Market in 2023
Despite global real estate’s vulnerability to macroeconomic volatility, the United Arab Emirates had positive growth in the fourth quarter of 2022. This reflects well and looks promising for the year 2023, grabbing the attention of wealthy buyers. As a result of stable economic policies, great infrastructure, a safe haven for safer investment options, and an intrinsic ability to adapt to new trends, the real estate sector in Dubai continues to gain momentum in 2022. Industries like retail that struggled early in the year saw strong growth in the fourth quarter. In 2023, the UAE is predicted to continue luring regional and international investors with its luxurious and magnificent properties for sale.
Additionally, Dubai’s overall supply increased to 680,000 units after the delivery of 38,000 residential units last year in 2022, and Abu Dhabi’s residential stock increased to 279,000 units after the delivery of around 6,000 units. There will be a significantly higher number of completions expected in Dubai in 2023 (41,000 units), while 6,000 units are expected to be completed in the emirates.
2023 will be the Year of Completion for about 100,000 sq m of Commercial Properties for Sale
Average property sales prices in Dubai and Abu Dhabi increased by 10% and 3% annually in Q4 2022. Despite a 27% increase in Dubai, rents in the capital city saw little change.
With a gain of 30,000 square meters, Dubai’s total stock of commercial space in 2022 reached 9.1 million square meters, while Abu Dhabi’s capital city saw an increase of about 8,000 square meters, bringing the total stock there to 3.9 million square meters. Nearly 100,000 square meters of commercial space are scheduled to be completed in Dubai in 2023, while more than 35,000 square meters are projected to be completed in Abu Dhabi during the same time period.
A new super-regional mall and the expansion of two existing ones in the same category will account for the majority of the 355,000 sq. m. of space scheduled for delivery in 2023 across the city, bringing Dubai’s total stock to 4.63 million sq. m. With an estimated increase of 232,000 square meters in 2022, retail space in the nation’s capital is likely to rise from 2022’s flat 2.89 million square meters.
The World of Real Estate Dubai will Continue to Soar in 2023
The population of Dubai surpassed 3.5 million in April, and experts predict that the number will soar to 5.8 million by 2040, due to an influx of refugees fleeing the global pandemic.
It is anticipated that demand will remain high in 2023 as the primary push and pull factors driving migration to the UAE, such as the easing of visa requirements, etc. The year started with high investments by wealthy buyers, as seen from the glimpse of real estate transactions in the first week of January.
The United Arab Emirates (UAE) will remain innovative in order to attract the greatest talent as people and money flee the world’s rising war, instability, and tax burdens to the country.
A shortage will persist in the secondary market as handovers continue to fall behind population growth. With the most recent wave of new launches coming to completion in 2024, the supply and demand equilibrium is expected to rebalance at that time.
Business Bay, Dubai Marina, and JVC – Predicted as the Most Active Areas for Real Estate Dubai 2023
- In the year 2022, the Dubai real estate market saw 97.4k deals at a total of AED 265,7 billion in the areas of Business Bay, Dubai Marina and Jumeriah Village Circle.
- Apartments in desirable neighborhoods, including Business Bay, Dubai Marina, JVC, Downtown Dubai, Dubai Creek Harbour, and Palm Jumeirah, will be easily found in 2023 at competitive prices.
- Jabal Ali First, Dubai South, Villanova, Arabian Ranches, Mudon, Dubai Hills, Tilal Al Ghaf, and Emirates Living are all excellent places to look for a villa to buy in 2023.
- Business Bay dominated the Dubai real estate market in 2022, with over 10,300 sales of AED 17.6 billion at an average price of AED 1.2 million, and the Dubai Land Department predicts that this trend will continue in 2023.
- Dubai Marina, JVC, and Downtown Dubai are the promising communities with high hopes for the year 2023.
In the wake of the widespread geopolitical upheaval, Dubai emerged as a remarkable champion. It received the largest influx of private wealth in 2022 due to the emigration of wealthy business people, investors, and professionals. In the first half of the year, over sixteen percent of Russian businesses and entrepreneurs established operations in the United Arab Emirates (UAE), primarily in Dubai. It will definitely continue to appeal in the future as well, to overseas purchasers concerned with the protection of their assets.