Dubai’s High-End Housing Property Market Is Also Expected To See An Increase In Investment From European Investors This Year. Driven By High Inflation Rates In Their Home Countries.
According to a recent market analysis, affluent Chinese investors are expected to drive a significant increase in the percentage of foreign purchasers in Dubai’s most sought-after luxury home category in 2023. This is due to the easing of Covid-related limitations in their country.
Due to rising rates of inflation in their home nations, European investors are also anticipated to expand their investments. In the emirate’s high-end housing property assets this year. According to a report by Realiste, a Dubai-based proptech company that creates AI-powered solutions for real estate investing, the increase in the inflow of new foreign investors will increase the emirate’s luxury property market by 14% this year.
Real Estate In Dubai: Europeans Now Outnumber Russians As The Top Buyers
High-net-worth Due to the Russian-Ukrainian crisis, Russians were the leading purchasers in Dubai’s high-end real estate market in 2022. According to Realiste, “Dubai’s luxury [property] market will witness a predicted rise of roughly 14 percent throughout the year.
The luxury real estate market in the emirate has benefited from the worldwide recession, with Mukesh Ambani, an Indian billionaire industrialist, allegedly paying $163 million for a home on the city’s Palm Jumeirah artificial tree-shaped island late last year.
According to Alex Galtsev, co-founder of Realiste, “We are highly enthusiastic about Dubai’s expansion [in the luxury property category] in 2023.” Due to several variables, including a growing population, a brain drain from the Commonwealth of Independent States (CIS), and a financial influx from European and Asian nations, Galtsev predicted that this year will be the strongest year ever for Dubai’s real estate market.
Dubai’s Most Sought-After Neighborhoods
The survey predicted that the value of some of the most coveted residential locations, like Downtown Dubai and Palm Jumeirah, would increase by 7% in 2023, followed by Dubai Marina by 6%, Jumeirah Bay by 5%, and Bluewaters by 2%.
According to the Realiste survey, opulent housing units in Bluewaters are now among the most costly in the UAE, with average values estimated at $20 million and fetching an average per square foot price of $10,319 respectively. Compared to this, upmarket housing units in Downtown Dubai and Jumeirah Bay cost, on average, $3.2 million and $7 million, respectively.
The Causes of The Increase
Realiste claimed that the emirate’s position as a haven is the main reason for the growing interest of foreign investors in its upmarket real estate holdings. According to the report, “it will boost the proportion of foreign purchasers in the regional real estate market in 2023.”
The emirates comparatively inexpensive pricing in the luxury market, as compared to other major international financial centers like Singapore, is another driver in its expansion.
The report noted that Dubai is now one of the most reasonably priced luxury residential marketplaces in the world, with premium homes selling for about $800 per square foot. In addition to the comparatively cheaper prices, the city’s constrained supply of desirable homes also adds to its rising costs.