Against all odds, and despite the inflation worldwide, Dubai property market continues to thrive, mainly due to new attractive visa laws and developers’ flexible payment plans, not to mention the great impact Expo 2020 had on the overall economy of the emirate and the affluence of a staggering number of wealthy foreigners in search of a luxury life in a secure place.
Given the above facts, the Dubai real estate market is topping the list of the most sought-after destinations to buy a property according to Knight Frank. But what are the key real estate trends and expectations for this booming market in 2023?
Real Estate Trends in Dubai
Buying a property in Dubai is highly influenced by the real estate trends, whether in terms of types of housing, neighborhood, size or rental preferences etc.
Trend#1 Best Places to Invest
Russians are among the top 10 nationalities who prefer to invest in Dubai, this city, along with Miami, being one of the most popular places to invest in 2023.
Trend#2 Single Family Homes
Despite a rise of 13% in prices in October 2022, single family homes are the new housing trend in Dubai.
Trend#3 Demand for Larger Unit Types
Villas and townhouses with balconies and gardens amid a strong community are in high demand, consequently increasing rental rates. Villa rents have recorded a 6% growth in 2022.
Trend#4 Apartment Rents
Apartments in prominent neighborhoods rank second in rentals after villas, mostly in lavish developments such as Mudon Views in Dubailand by Dubai Properties.
Trend#5 Secondary Locations
The new trend is to invest not only in prime areas, but also in secondary locations that allow resident to enjoy good community facilities such as those surrounding the Expo 2020.
Trend#6 Completion of Projects Ahead of Time
Due to rising construction costs, a majority of developers are stepping up efforts to complete projects on time, and sometimes ahead of schedule. Lavish developments such as La Vie in JBR, by Dubai Properties, is now nearly completed and slated for handover in Q1 2023.
Trend#7 Flexible Space
According to a report by Savills Dubai Office H1 2022, there is an increasing demand for adaptable space options particular in cases of co-working spaces. This trend is mainly down to companies eager to reduce their capital expenditures. Most of the prominent flexible space operators across Dubai are recording high occupancy levels.
Trend#8 All-cash Payment
Buyers investing in real estate in Dubai are willing to pay all-in cash to secure their money due to political and economic volatility in many countries, while developers are benefiting from this new trend. Cash will definitely be king in Dubai real estate market.
Dubai Real Estate Market Expectations in 2023
With a visionary plan like Dubai 2040, the city is going to attract, if possible, more foreign investors and entrepreneurs in the coming years. Add to it the introduction of different types of visas and UAE government schemes for homebuyers to encourage people to settle in Dubai by obtaining UAE residency and citizenship through investments, like Golden visas, 5-years visas, dual-citizenship visas, remote-working visas, and retirement visas, a bright real estate future awaits this country.
New Housing Hubs
The Expo 2020 Dubai neighborhood and the Dubai 2040 Urban Master Plan are expected to become an independent free zone and the new hot spots of Dubai. They feature affordable housing while becoming at the same a central pivot for exhibitions, tourism and logistics.
Price Upsurge
Dubai saw prices soar by 50% in 2022 due to the investments by wealthy expats. This tendency is set to continue in 2023 for high-end properties in Dubai as there is an increase in demand that will result in a higher rate, whether for purchasing or renting a property. An upsurge of 13.5% in prices is expected as the foreign buyers’ interest in investing in properties for sale in Dubai is soaring as well.
UAE: Top Destination for Foreigners
According to the recent Henley Global Citizens Report, 4,000 high-net-worth individuals are expected to relocate to the UAE in 2023 due to the new legal and regulatory framework facilitating business, investment and residency. Consequently, the real estate market will witness an outstanding boom, with Dubai topping the list of the world's luxury real estate markets.
Digital-driven Economy
Government initiatives towards transitioning to a digital-driven economy are being put in place, thus reinforcing investment in properties in Dubai. Furthermore, the Dubai Land Department’s decision to make all real estate data publicly available will also strengthen transparency, thus boosting the property market growth.