Dubai property market may break more records in 2023
27 February 2023, Khaleej Times
HNWIs and expatriates will continue to pour it, thereby cementing its position as a leading real estate destination
There comes a stagnant period after a continuous streak of highs, where the growth stops, and things start to go downwards. This is something the Dubai property market is far from experiencing.
It’s moving upwards, and only upwards, surpassing other global real estate destinations. Of course, the Covid-19 pandemic proved to be a roadblock, but even the global pandemic wasn’t able to halt the Dubai property market’s growth for a long period. It eventually got back on track in no time, and the results are there for everyone to see.
With the official sales figures indicated a strong performance in 2022, the Dubai property market is expected to continue the same trend this year. I expect 2023 to be an even better year for the Dubai property market as it continues to attract the attention of HNWIs and foreign investors.
Prime areas will continue to dominate
Speaking of HNWIs and foreign investors, they had their eyes on Dubai’s prime areas in 2022. According to early estimates, the luxury sector has set an unprecedented record by making a 50 per cent jump in 2022 in terms of prices.
In 2023, Dubai’s prime sector is expected to continue its domination with the highest prime price growth globally, leaving behind bigwigs, such as Miami and Paris, according to Knight Frank’s report. It is further expected to escalate in the next five years with an estimated growth of 22 per cent.
More developments on the card
The government has a lot in store for development in Dubai. This not only includes the construction of new roads to connect far-off areas but several new attractions as well.
The former will help people living in those areas to easily access other parts of the emirate. Better connectivity will benefit both the emirates and Emiratis in more than one way. On the other hand, the latter will strengthen Dubai’s position as a leading tourist destination.
Rising interest rate – Not an immediate threat
Many people were of the view that the rising interest rate is a threat to Dubai real estate. There were no major effects noticed in this regard in 2022. And I believe the same pattern will be seen in 2023 as well.
How I see this is that even with increased prices, there is always a set of buyers who are willing to capitalise on the opportunity to venture into the Dubai property market. Suffice it to say, the market has many takers. Those who price out look for alternative options within Dubai according to their budget. There are still many communities where affordable housing is still available.
This not only benefits buyers but also works in favour of the property market since it helps affordable areas get more momentum. A win-win situation for all!
Wrapping it up, I believe that the Dubai property market is expected to break more records in 2023. HNWIs and expatriates will continue to pour it, thereby cementing its position as a leading real estate destination.