Dubai Real Estate Market Results In 2022 And 2023 Trends
Observers agree that by the end of 2022, Dubai’s real estate market had reached it’s high and declared it the most successful in the country’s history. According to recent data from the Dubai Land Department (DLD), yearly sales in the emirate hit a record high of AED 265 billion ($72.1 billion) in 2018, a rise of 76% from the previous year. The number of trades increased by nearly 60%, passing the 97,000 mark. Depending on the kind of home, the average price per square meter rose by 9-23%. Property values rose by an unprecedented 100% a year in some of the country’s most affluent neighborhoods. The volume and value of sales of expensive real estate both increased by 85% and 97%, respectively. The urban real estate market is forecast to expand more in 2023, according to analysts.
The UAE Property Market in 2022
Investors and businesspeople from all over the globe are drawn to the United Arab Emirates because of the country’s robust economy. According to Aram Grigoryan, a senior real estate specialist at the AX CAPITAL real estate firm in Dubai, the United Arab Emirates (UAE) devotes substantial resources to the growth of the real estate business because of the high profitability of real estate investments. Moreover, the United Arab Emirates has some of the most investor-friendly legislation in the world.
A streamlined long-term visa policy, a sizable yearly population increase, and a high degree of security and transparency of property transactions are among the important reasons highlighted by the expert as drawing new participants to the local market. High demand and robust competition fuel the market’s expansion, and investors can rest easy knowing their money is safe from inflation and other external threats.
Completed And Off Plan Projects In Dubai
There was a decisive swing toward off plan projects in Dubai by the end of 2022, according to Dubai market experts. Although in 2021, more buyers were interested in already-built homes (55%) than in off-the-plan properties (45%), this drastically shifted in the next year (2022). Just 44% of the homes sold were fully developed; the other 56% were undeveloped plots.
The following locations had the newest initiatives start up:
At Jumeirah Village Circle (JVC), 5,500 homes are available; in Damac Hills, 5,100; in Business Bay, 3,900, in MBR City, 3,200; and in Dubai Marina, 2,900.
Dubai Real Estate Market Trends 2023
The real estate market in Dubai will resume expanding, according to experts. In 2023, residential real estate values are anticipated to rise by 15% nationally and by as much as 46% in certain areas, according to a projection based on artificial intelligence. Wadi Al Safa 4, Hessayan First, and Al Yalayis are some of the less visible areas where a price increase is anticipated, whereas in more well-known areas, including Palm Jumeirah, growth rates are likely to be negligible.
Even more optimistically, some brokers see a 20% increase in emirate-wide pricing. Wealthy buyers and renters, as well as international investors, are predicted to drive up prices and rents in the city. They anticipate a corresponding rise in the market.
Other, more sober predictions exist as well. Price increases in 2023 are predicted to be about 5%, with the Dubai real estate market as a whole expected to cool. Yet even doubters agree that city house prices will rise.
