The emirate real estate sector is expected to reach AED300 billion by the end of 2023, the report said
The Dubai real estate market is set to experience unprecedented price growth by the end of 2023, surpassing major cities such as Miami and Paris, according to the “Dubai Property Market Forecast for 2023” report by sustainable property developer, ZāZEN Properties.
The rise in prices is directly linked to the increase in sales volume, with Dubai witnessing a substantial 75 percent growth in registered sales in 2022 compared to the previous year. Forecasts predict that the real estate sector will reach AED300 billion by the end of 2023.
In 2022, sales volumes in the emirate registered AED261 billion, showing a 75 percent increase from AED149 billion in 2021.
However, despite projections of a 50 percent increase in the cost of prime properties compared to 2021, luxury housing in Dubai remains more affordable than anywhere else in the world, despite the significant price surge.
The developer also emphasised the significance of this growth for the country’s sustainable real estate sector.
In line with this trend, Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister of the UAE, and Ruler of Dubai, recently approved 78 environmental projects and initiatives, highlighting the importance of sustainability.
This announcement comes just ahead of the 28th Conference of Parties (COP28), an annual gathering focused on climate change and its impact across various sectors. Dubai will host this year’s session in November until December.
A recent survey conducted by construction analytics software company Procore revealed that 91 percent of regional respondents believe the decarbonisation of construction projects will be a significant challenge in the next three years.
The report also highlighted the efforts made by companies in the UAE and Saudi Arabia to adopt sustainability practices, with 43 percent of firms in these countries already adhering to the ISO 14001 – Environmental Management System standard.
Additionally, 45 percent of organisations in these GCC nations aim to achieve compliance within the next year. These practices are expected to set a sustainable precedent not only in the UAE and Saudi Arabia, but also throughout the Middle East.
