Prices in Dubai's property market are expected to increase further as investments continued to pour into the real estate sector, analysts have said.
Apartment rates have reportedly increased by over 8.5 per cent so far this year, while a 13 per cent spike in prices has been recorded for villas, according to the latest data from Zoom Property Insights.
On average, property prices in Dubai have reached Dh1,070 per square foot, the report added.
Among the preferred areas for apartments in the emirate are:
- Jumeirah (3.3 per cent price increase)
- Downtown Dubai (2.5 per cent price increase)
- Palm Jumeirah (2 per cent price increase)
DIFC, MBR City, Dubai Hills, and Business Bay are other popular neighbourhoods that garnered the interest of investors and tenants.
For villas, the top choice remained Palm Jumeirah, with a nearly 3 per cent increase in property prices.
Villas in Jumeirah also showed a growth of over 3.5 per cent. Besides that, District One, MBR City, Dubai Hills, and The Meadows attracted buyers.
Luxury property boom
Among other sectors, it’s the luxury segment that has dominated the property market.
High-net-worth individuals (HNWIs) and foreigners continue to invest in this sector, resulting in a remarkable boost.
According to the Zoom Property Insights, there has been significant growth of 88.9 per cent in luxury properties over the period between Q3, 2021 and Q3, 2022. This marks the highest growth globally, with Miami and Tokyo ranking 2nd and 3rd with 30.8 per cent and 17 per cent growth, respectively.
Ata Shobeiry, CEO of Zoom Property, believes that prime areas in Dubai will continue the upward momentum in 2023 as well.
“The year 2022 proved to be a great year for the luxury property segment and the trend is expected to continue in 2023 as well. The launch of various new developments featuring ultra-prime properties will continue to attract HNWIs and foreign investors,” he said.
Outlook for 2023
Dubai’s prime areas will continue to attract HNWIs and millionaires and prices are expected to sustain an upward trend in 2023, the report said.
However, the mainstream residential market is expected to post steady growth in prices next year.
For 2023, the Zoom Property Insights forecasts a strong double-digit growth of around 15 per cent in the emirate’s prime areas. These include neighbourhoods like:
- Palm Jumeirah
- Emirates Hills
- Jumeirah Bay Island
It sees up to 7 per cent average price increase in the emirate’s mainstream residential market in 2023.
“With the way the property market is performing, this figure looks certainly achievable. The areas famous for luxury properties, as well as affordable properties, are performing exceptionally well, paving the way for a strong end to the year 2022 and an equally strong start to 2023,” Shobeiry said.