Real estate experts expect an increase in property price and rental value amidst rising demand from HNWIs and foreign investors.
Dubai's real estate market will continue its upward trajectory in 2023 as the property prices and the annual rent are expected to increase further amid rising demand and interest from high net-worth individuals (HNWIs) and foreign investors, according to Property Insights.
The latest data from Property Insights forecasts that Dubai property prices are expected to increase up to 20 percent increase on average and the luxury segment will continue to dominate with 13.5 percent year-on-year growth in 2023.
The property market will continue its upward momentum on the back of strong demand from end-users and foreign and local investors.
“The Dubai property market has cemented its position as a leading real estate destination, with 2022 proving to be a remarkable year (so far) for the sector. It is expected to end on a strong note, paving the way for an even stronger 2023,” he said.
"The popular communities, such as Palm Jumeirah, Downtown Dubai, Dubai Marina, JBR, etc., will continue attracting buyers and investors in the next year as well”
Referring to a recent report, the high-end properties in Dubai will have another remarkable year, with an anticipated 13.5 percent increase in prices next year. This is the highest increase among the top 25 foreign destinations.
Miami ranks 2nd with an expected five percent increase in prices while Los Angeles, Paris, and New York are other prominent names on the list.
Data obtained from Property Insights indicates that Palm Jumeirah witnessed the highest price increase of 5 percent in the apartment sector in recent times. It was followed by MBR City, Meydan City, and Living Legends. All these communities recorded a 4.7 percent increase in the average property prices.
For villas, the highest growth of 4.6 percent was recorded in Emirates Hills. Mudon (4.1 percent), Jumeriah Village Circle (3.9 percent), and MBR City (3.1 percent) remained other prominent areas.
For rental apartments, The Old Town, Dubailand Residence Complex, Green Community (DIP), and Downtown Dubai showed the most promising figures of 4.9 percent, 4.6 percent, 4.5 percent, and 4.4 percent, respectively.
The Sustainable City (4.9 percent), DAMAC Hills (Akoya) (4.8 percent), The Villa (4.8 percent), and Reem (4.7 percent) remained the popular choices for renting villas.
Besides the aforementioned areas Jumeriah, JBR, Arabian Ranches, and Dubai Marina are expected to drive the property market in 2023.
“Dubai's position as a leading tourist destination, reformed policies by the government, relaxation in visa rules, and an expat-friendly environment; it’s a combination of all these factors that have helped to make Dubai property market a roaring success. I believe they will continue to contribute to the sector’s success in 2023 as well,” Shobeiry concluded.
source: Khaleej Times
