The Emirate Has Experienced A Significant Increase In The Price Of Luxury Properties Of 88.9%. Which Represents The Highest Growth Worldwide.
According to analysts, prices in Dubai real estate market are anticipated to rise. Even further as capital continues to flow into the industry. According to Zoom Property Insights, apartment rates have risen slightly by over 8.5 % so far this year. Whereas a 13 % price increase for villas has been noted. The report also stated that the average price of real estate in Dubai has surpassed Dh1070 per square foot. Apartments in the emirate are frequently found in the following locations:
- Jumeirah (3.3% price increase)
- Downtown Dubai (2.5% price increase)
- Palm Jumeirah (2% price increase)
In addition to Business Bay, DIFC, Dubai Hills, MBR City, and other famous areas have drawn interest from investors and tenants. With a price increase of almost 3 percent, Palm Jumeirah is still the top choice for villas. Additionally, Jumeirah villas experienced growth of more than 3.5%. In addition, buyers were drawn to MBR City, District One, Dubai Hills, and The Meadows.
Luxury Real Estate Boom
The luxury sector has, among other areas, dominated the real estate market. This industry has seen a notable uptick because of continued high-net-worth individuals’ (HNWIs’) and foreign investors. Luxury property sales increased significantly between Q3, 2021 as well as Q3, 2022, as per Zoom Property Insights, by 88.9%. With 30.8 % and 17 percent growth, respectively, Miami and Tokyo are ranked second and third globally with highest growth. As per Ata Shobeiry, CEO of Zoom Property, prime areas in Dubai will maintain their upward trend into 2023.
“Luxury property market had a great year in 2022, and experts predict that trend will continue in 2023 as well. HNWIs and foreign investors will continue to entice by the opening of numerous new developments. That feature ultra-prime properties, he predicted.
Forecast for 2023
According to the report, HNWIs and millionaires will continue to attract to Dubai‘s affluent neighborhoods, and prices will likely continue to rise. The general residential market, however, expects to record steady price growth in 2019. The emirate’s prime areas also expects to experience strong double-digit growth of around 15% in 2023, according to Zoom Property. Neighborhoods like these include:
- Palm Jumeirah
- Emirates Hills
- Jumeirah Bay Island
The mainstream residential market in the emirate expected to 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 real estate are doing incredibly well. Laying the groundwork for a strong end to 2022 and an extremely strong start to 2023, according to Shobeiry.