Currently, Dubai is considered one of the best cities in the world to invest in luxury real estate. Despite the global economic downturn, the emirate’s luxury property market remains resilient. Investments in flats in Dubai, as well as in commercial real estate and villas will turn out to be a profitable asset in the future.
Expert Opinion on Property in Dubai
As more people from all over the world invest in Dubai, property experts say prices in the city will rise throughout the year. “Dubai recorded a double-digit price increase of 11.05% in 2022, with 86,849 purchases and sales in the residential segment, which is a new all-time high, beating the previous record set in 2009,” said Madav Dar, real estate agent. “The industry will also continue to be strengthened by the growing number of expats in the UAE, especially as Europeans come to the country in search of permanent residence.”
“A recent survey shows that the UAE is second only to the UK in terms of demand from wealthy buyers,” he said. “With over 70,000 millionaires living in the city, Dubai’s HNWI is poised for further growth. The emirate’s luxury property segment will benefit the most from this factor,” said Arash Jalili, another investment expert.
According to experts, all segments of the housing market will show growth, but villas and luxury real estate will be in especially high demand since the supply in this particular segment is very limited. There will also be demand for medium to modest-budget properties under AED 1 million from investors and home buyers. So, as in past years, the city will continue to embrace everyone who wants to make the emirate their first or second home, and the property sector will try to meet their expectations as much as possible, integrating the needs of new residents into new forms of property and infrastructure.
A New Trend Among Buyers in Dubai
Real estate professionals have noted another trend that has become a priority for many investors and buyers. Statistics show that over the past few months, there has been an increased demand for two-bedroom apartments on the market.
It is clear that almost 60% of people interested in real estate in Dubai prefer spacious apartments that include at least 2 well-ventilated bedrooms. The previous year, this percentage was only limited to 57.2%.
While the demand for townhouses and villas has decreased from 42% to 40%.
This situation perfectly demonstrates the interconnection of the global situation in the real estate market. During the COVID-19 pandemic, people preferred to buy villas and townhouses to minimize the discomfort associated with numerous restrictions. However, today, when pandemic restrictions are becoming history, buyers have again begun to be interested in apartments.
Best Areas to Purchase Real Estate in Dubai
In Dubai, artificial intelligence has identified the best areas of the city for real estate investment in 2023.
- According to the data, the residential community Hessian First is in the first place, where capital investment is expected to grow by 20%.
- This is followed by the large residential and commercial area of Al Barsha, which is expected to increase in prices by 17.6% by the end of 2023.
- In third place is Mamzar, which is expected to increase in property values by 17.1%.
It is worth noting that the main factor contributing to the growth of consumer demand and property value in the real estate market is a convenient location near the waterfront, green areas or famous attractions of the city. For example, the Hessian First residential area is located close to the prestigious Palm Jumeirah and provides quick access to the Persian Gulf.
Real estate experts predict that in the next three years in areas of the city such as Hessian First, Al Barsha and Mamzar, residential property prices will rise significantly. The Hessian First residential area is expected to see a 60.6% increase in housing prices by December 2025. Along with this, experts predict an increase in the cost of luxury residences in 2023, as the emirate’s luxury property market is attractive for foreign investment.
Real Estate Agency in Dubai
Dubai-Property.Investments offer you real estate in the most trendy and profitable areas of the city, minding that you can use it as a personal residence as well as rent it out.
