The real estate market of Dubai is thriving at a steady pace for the past decade. Property prices in UAE are witnessing a price hike of 20-25% every year. As the demand rate for luxury and standard properties is high in Dubai, the supply flow is expected to be slower in the coming years.
As per specific reports, it is specified that the price growth for residential properties in Dubai will see a significant rise in 2023 and the following years. Hence, Dubai will be leading the global real estate markets in the forthcoming years. Let’s take a deeper look at the property market forecast of Dubai for the next five years.
The prime residential localities of Dubai, which includes Emirates Hills, Jumeirah Bay Island, and Palm Jumeirah, will possibly experience a price hike of around 13.5% in 2023, for their properties. As per Knight Frank’s Prime Predictions of 2023, it is one of the strongest price hikes in all of Dubai, which is supposedly going to be higher than the price growth of Paris and New York.
Global Property Consultancy in Dubai Edition, highlighted that all of the luxury properties in this Emirate will be in demand for the forthcoming years. The pricing for 2023, will be around 50% higher than that of 2021.
As a whole, UAE residential real estate market is expected to experience immense growth, recorded with an approximate CAGR of 8% during the forecast period of 2022 to 2027. The residential property market of UAE was earlier at a halt due to the pandemic crisis, but there has been a continual rise in property prices, since the start of 2022.
UAE and Dubai in specific, have revamped their economic reforms and pandemic management practices, to rebound from the drawbacks, and help all industries thrive. Dubai is now open for five-year and ten-year residency visas for people from all across the world, to come and invest in real estate in Dubai.
In 2023, and the forthcoming years within the forecast period will witness a massive trend for more real estate investments, coming from different parts of the world.
There are new property launch plans in Dubai, which are expected to contribute towards boosting its overall real estate market. Dubai Land Department (DLD) launched a statistic that shows significant growth signs for the real estate market in Dubai.
There has been a survey conducted by property analysts on Dubai’s house prices. The survey outcomes stated that house prices in Dubai increase by 2.5% than the price in 2021. The affordability of residential properties in Dubai will be a contributing factor toward helping the industry maintain a steady course for the next five years to come.
In the year 2021, the off-plan properties of Dubai recorded a market size of AED 4.95 billion or USD 1.3 billion, which was collected from around 2599 deals. It was the highest recorded sales collection from the off-plan properties in Dubai, after 2013. Moreover, this represents an increase in off-plan property investments since 2019. Hence, if not for COVID, the real estate market forecast would have skyrocketed by 2022.
But, due to this halt, the projected growth of the real estate market is expected to boom in the next five years and make Dubai a global leader in the industry.
Villanova and Arabian Ranches 3 reported the largest number of off-plan townhouse and villa sales. They sold 157 and 187 units respectively. Some of the other properties such as Tilal al Ghaf sold 79 units and Dubai South, sold 58 units.
A 53% increase was observed in the prices of off-plan properties in Dubai, from 2020 to 2021. The prices climbed from AED 1.2 million in 2020 to AED 1.9 million in 2021. In 2022, after the pandemic’s effect is eradicated, the price stands at AED 1.8 million. The growth factor has been stable for a year, but as investment schemes are introduced, there is a high chance the price ratio is about to rise in the coming years.
The residential real estate market in Dubai has now become way too competitive for the key players to meet the supply needs to correspond to the demands. Today, Dubai witnesses an increased expenditure on infrastructure, relaxed foreign investment laws, modern government investment initiatives, and new project launches.
Hence, all of these factors and more are expected to channel overall development in the real estate sector of the city and contribute to the growth of the country. Such development is what will boost the interest of investors from all parts of the world to buy properties in Dubai.
Some of the major key players in the real estate market of UAE are Emaar Properties, Nakheel Properties, Damac Properties, Deyaar Properties, and Aldar Properties.
As of November 2021, Emaar Beachfront is developing a new property in the maritime epicenter of Dubai City’s Harbor. It is a new luxurious residential property that will be standing string across the 10-million square feet. It is a private island with superior amenities, created to replicate the style of a resort.
This property boasts restaurants, bars, cafes, recreational facilities, and much more. Moreover, the famous and beautiful Dubai Marina is right next to this place of residence, for an elegant livelihood.
This is all about the thriving real estate industry of Dubai, which is supposed to escalate its growth in the coming five years. There is a substantial peak demand for residential properties in Dubai, from all across the world. The investors are motivated and welcomed to Dubai through various schemes and visa flexibilities.
Keeping that in mind, people who want to invest in real estate in Dubai must do it sometime recently, because, in the next couple of years, the price will gradually rise, giving you ample profit on your investment.
