Recent research shows that Dubai's real estate sector is ready to experience further growth in 2023, with an estimated growth of 46 percent.
From the data of Realiste, property prices in Dubai grew by 20-40 percent over 2022. Some areas performed drastically well. Palm Jumeirah saw a growth of 59 percent, and Trade Center First grew by 210 percent.
In 2022, Dubai saw the greatest inflow of private wealth as Russian entrepreneurs, top-level professionals, and investors searching for new homes. According to Dsight, more than 16 percent of Russian companies and entrepreneurs relocated to Dubai and UAE, particularly in the first half of 2022.
The real estate market gained profits from Qatar's Fifa 2022 World Cup. Dubai was the city that benefitted the most out of Qatar because of its status as a tourist attraction and the financial hub of the region.
Dubai will stay attractive to foreign buyers who want to shield their assets. The position will be strengthened as the geopolitical instability and energy crisis grow. Because of this, there will be a boost in demand for local property and the market in 2023.
Realiste has done research on data that has been collected over 12 months between December 2021 and December 2022. The analytics contains the trends of Dubai's real estate market: the average cost of properties in the city, the areas showing an increase, and the most high-priced or low-priced locations. The analysis comes from Realiste artificial intelligence technology and gives the housing market forecast for 2023.
Realiste data shows that average prices in Dubai differentiate from AED 425,000 in Wadi Al Safa 2 Part 1 to AED 12,042,618 in Al Safouh First Part 2. The most affluent district of Dubai, according to Realiste AI, was Trade Centre First, followed by Al Wasl Part 2.
In the first part of the year, well-known districts like Palm Jumeirah saw the highest demand for property. Prices in these districts grew because of the imbalance between low supply and high demand.
Districts like Hadeeq Sheikh Mohammed Bin Rashid Part 2, commonly known as Dubai Hills, also witnessed significant growth. They attracted families weary of living next to the bay or canals and looking for places surrounded by parks. Dubai Hills grew by 53 percent and reached the price of AED 1,600,000.
Most places that saw significant growth in 2022 have reached their price limit and are forecasted to grow moderately through 2023. For example, the price in Palm Jumeirah is around AED 3.95 million; Realiste AI data forecasts that the prices in the area will rise by 5 percent in 2023.
The underestimated areas yet to hit their price limits will see tremendous growth. The housing market of Jumeirah Village Triangle saw a growth of 62 percent in 2022, with average housing prices getting to AED 731,403. In 2023, the cost of property in this area is expected to rise by 29 percent.
The Dubai real estate market will see an upward trajectory in 2023. Local prices will rise steadily by at least 10-15 percent, with some areas rising up to 46 percent, Realiste AI displays.
In conclusion, Dubai will see a growth of an estimated 46 percent in the year 2023. Realiste data shows property prices grew by 20-40 percent in 2022. In 2022, the most private income came into Dubai through Russian entrepreneurs. Profits were gained because of Qatar's Fifa 2022 World Cup. Well-known districts like Palm Jumeirah saw the highest demand for property. Dubai's real estate market will see an upward trajectory in 2023.