Dubai real estate market to reach $81bn in 2023
Unique Properties says it is highly optimistic about current market trends, led by influx of HNWIs
A 62% increase in the number of high-net-worth individuals (HNWIs) living in Dubai from 2012 to 2022 has placed the city’s real estate market on a trajectory to achieve US $81.69bn in sales this year, according to Dubai real estate agent Unique Properties.
The emirate is said to house over 68,400 HNWIs and with individuals from this demographic increasingly flocking to the UAE, the country’s prime real estate segment is flourishing.
Dubai has become a preferred destination for the world’s highly affluent to settle down, as a result of the UAE’s convenient geographic location, its tax advantages and favourable commercial and ownership policies. Dubai’s real estate market is forecast to witness 46% growth in 2023, the statement from Union Properties noted.
Sitting at the top of the Middle East’s HNWI rankings, Dubai’s reputation is continuing to attract wealthy investors. Turmoil in different parts of the world has seen an influx of Europeans migrating to the UAE, and this trend is expected to continue, while a predicted uptick in Chinese investors is also set to further drive growth in the luxury property segment of Dubai.
Downtown Dubai, Palm Jumeirah and JBR are among the major districts spurring this growth. Increased demand for luxurious residences in these areas is seeing the price of high-end homes in Dubai spike from 6% to 7.9% in 2023 to represent the highest value increase worldwide. Transactions worth more than $270mn are being seen on a daily basis.
Arash Jalili, Founder and Chief Executive Officer of Unique Properties, commented, “Dubai’s real estate market has maintained its post-pandemic momentum and this has unlocked the potential to shatter last year’s historic growth with HNWIs consistently relocating to the UAE. Real estate transactions have already surpassed $3.3bn since the beginning of the year and with total property transactions in April increasing by more than 16% compared to the same period last year, the emirate remains on an upward trajectory.”
According to the most recent data, total property transactions in April stood at 7,615 and real estate prices increased by an annual average of 14.5% with the off-plan market spearheading this growth.
