Due To Rising Prices Driven By HNIW And Foreign Investor Demand, The Market Is Poised To End The Year On A High Note.
The Dubai real estate market is poised for a strong 4th quarter and end to the year with a nearly 1.8 % price increase in October. As well as similar trend in November as investors and end-users proceeded to invest in the emirate’s real estate sector.
According to the most recent data from Zoom Property Insights, the average price of a square foot of real estate in Dubai has reached Dh1070. Additionally; it revealed that the prices of apartments and villas have increased by over 8.5% and 13%, respectively, so far this year.
The Majority of Properties Are Still Expensive
The luxury sector has, among other areas, dominated the real estate market. HNWIs and foreign investors keep putting money into this industry, giving it a notable boost. Luxury property sales increased significantly between Q3, 2021 and Q3, 2022, as per Zoom Property Insights, by 88.9%. This represents the most growth globally, with Miami and Tokyo coming in second and third, with 30.8% and 17% growth. According to Ata Shobeiry, CEO of Zoom Property, prime areas in Dubai will maintain their upward trend into 2023.
“Luxury property segment had a fantastic year in 2022, and the trend is forecast to continue in 2023 as well. The opening of numerous new developments with ultra-prime properties will keep luring HNWIs and foreign investors, he predicted.
Apartment Complexes in Demand
The most popular locations for apartments in Dubai remained Palm Jumeirah, Downtown Dubai, and Jumeirah. With price increases of over 3.3 %, 2.5 %, and two%, respectively. Other well-liked neighborhoods that have drawn interest from buyers and investors. For apartments in Dubai include DIFC, MBR City, Dubai Hills, and Business Bay.
With a price increase of almost three%, Palm Jumeirah maintained its dominance in the villa market. Jumeirah villas also experienced growth of more than 3.5%. In addition, buyers for villas were drawn to District One, MBR City, Dubai Hills, and The Meadows.
HNWIs and millionaires will continue to rise to Dubai’s affluent neighborhoods. In addition, prices are predicted to continue rising in 2023. However, prices in the general residential market expected to increase steadily in 2019.
The neighborhoods of The Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island are included in the emirate’s prime areas. Which Zoom Property Insights predicts will experience a strong double-digit growth of about 15% in 2023. The emirate’s primary residential market will experience an average price increase of up to 7% in 2023.
“Given how the housing market is doing, this figure appears to be attainable. The regions known for both expensive and affordable properties are doing incredibly well. Which is paving the way for a strong end to 2022 and an extremely strong start to 2023, according to Shobeiry.
- In October, there was an increase in home prices of 1.8%; this trend continued in November.
- With price increases of 8.5% and 13% for apartments and villas. Respectively, the average price of real estate has risen to Dh1070.
- Dubai’s luxury real estate market reported global growth of 88.9%, outpacing Miami and Tokyo by a wide margin.
- The sought-after neighbourhoods for apartments include Jumeirah, DIFC, MBR City, Downtown Dubai, Palm Jumeirah, Dubai Hills, and Business Bay.
- For villas, buyers and investors favour The Meadows, District One, MBR City, Palm Jumeirah, and Jumeirah.
- Dubai prime prices predicted to increase by 13.5% in 2023.