The prime residential market in Dubai will post strong price growth in ultra-luxury and luxury segments across Dubai and lead global markets in 2023, says a latest report.
The price in prime residential areas, which encompasses the neighbourhoods of Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, are set to experience a significant increase in 2023 — the strongest price growth globally as cities like Paris, New York and Singapore will only be able to achieve marginal growth, according to Knight Frank’s 2023 Prime Predictions.
The global property consultancy, in its Dubai edition said luxury properties in the emirate will remain in demand and prices are likely to end the year around 50 per cent higher than 2021.
Faisal Durrani, partner and head of Middle East Research at Knight Frank, said Dubai’s prime residential market has and continues to be a global outlier, with record price growth in 2022, albeit this has been from a low base.
“Prime values are being fuelled by Dubai’s safe-haven status, an exceptionally diverse range of international ultra-high-net-worth individuals in search of luxury second homes, combined of course with the government’s world-leading response to the pandemic, which has spurred business confidence, Durrani said.
“Adding to the city’s appeal is its relative ‘affordability’, with prime homes transacting for around $800 per square foot, making Dubai one of the most ‘affordable’ luxury residential markets in the world. Overall residential prices trail 2014 peak levels by 21.4 per cent,” he said.
In an earlier report, Knight Frank said prime residential market in Dubai will sustain an upward trend due to strong demand from the investors. Of Dubai’s three Prime residential districts, the Palm Jumeirah, with an average transacted price of Dh3,054 per square foot (psf), remains the most affordable, relative to Emirates Hills (Dh5,220psf) and Jumeirah Bay Island (Dh6,345psf).
Wealthy investors betting on luxury real estate would do best by putting their money in Dubai or Miami next year, according to a new report.
In a ranking 25 of the world’s top luxury, or “prime,” real estate markets, Dubai topped the list, with prices expected to increase 13.5% in 2023, according to real estate consultancy Knight Frank. Miami ranked second, with prices expected to increase 5%. Dublin, Lisbon and Los Angeles followed, with 4% expected increases.
Dubai saw prices soar by 50% in 2022, so the price increases for 2023 mark a substantial slowdown. Dubai has seen a surge in wealthy residents over the past year, driven largely by Russians looking for a safe harbour for their wealth, yachts and real estate amidst Western sanctions over the war in Ukraine.
Prices for Dubai single family homes rose 13% in October, while overall sales volume jumped 73% over the previous year.
The Bottom Line
We believe that the Dubai property market will continue to attract investors and the demand will be there in the year 2023.