Market forecast: What awaits Dubai real estate in 2023?
The real estate market of Dubai has been on the upswing for quite a while now, and the coming year is not expected to deviate much from the set pattern. In the past year, the real estate market flourished, with prices going up by more than 60%. Expect more of the same in 2023.
There are some factors that can impact its growth and development, with the influx of foreign investors being one of the most important ones. Dubai is a very popular tourist destination, with more than 100 million visitors coming to the Emirate every year. Several of them tend to buy property in the city, either for investment purposes or for actually living in Dubai. This adds to the demand for villas and apartments, pushing up prices all the time.
Outlook in 2023
The year 2023 is expected to continue to bring good times to the property market, which has been growing at around 7-8% since the year 2010. Investors are all set to buy more real estate as the returns are likely to be high.
Additionally, new supply is coming into the market, but this will not bring down prices much, as the demand continues to be sustained. The price of properties is going to remain high, with estimates suggesting it can go up by 25% in the coming years.
Luxury villas are experiencing significant demand, and the year 2023 could see more takers for villas than apartments. As for the prices, they are expected to go up further, even though they have been hovering at fairly high levels for several years. But such is the demand for property in Dubai that a plateau is nowhere in sight yet.
The villa segment will be one of the strongest markets in 2023, with new projects getting ready and existing ones being expanded or renovated. Villas in the Palm Jumeirah and the Dubai Residence complex are seeing significant gains in value, and these areas are going to be of great interest to property buyers in 2023. Prices of villas in these hotspots have gone up by 30% in the past year, and further increases are expected going forward.
The biggest and most predictable trend in the Dubai real estate market is the rising demand for ultra-luxury properties, with a steadily rising number of high-net-worth individuals, international buyers and investors from all over the world looking to invest in this segment. Post-COVID, global property buyers are once again on the lookout for the best real estate, and Dubai, naturally, is one of the top choices for these well-heeled buyers and investors.
Rising interest rates in the UAE are not slowing down property hunters, and there are indications that the real estate market of Dubai will see a lot of activity in 2023. The downside is that affordable housing will continue to be in limited supply. There may not be much in store for the not-too-prosperous segment, as rents will continue to be high, along with the overall cost of living.
Overall, Dubai is set to see a great year in 2023 in terms of real estate, with high prices and returns. The market is likely to be stable, providing investors with a sound inflation hedge.