Dubai’s property market continues to grow in Q4, 2022

The market is set to end the year on a high note as prices continue to rise, helped by growing demand from news agencies and foreign investors.

With prices rising by almost 1.8% in October and November, Dubai's real estate market is expecting a strong fourth quarter and year-end as investors and end users continue to invest in the emirate's real estate sector.

The latest data showed that average real estate prices in Dubai reached AED 1,070 ($291.3)/m2. This year, there was also an increase in prices for apartments and villas by more than 8.5% and 13%, respectively.

Luxury real estate is still dominant

Among other sectors, luxury segment dominates the real estate market. Rich people and foreign investors continue to invest in this sector, leading to large growth. Between the third quarter of 2021 and the third quarter of 2022, there was a significant increase of 88.9% in the luxury real estate segment. This is the world’s highest growth: Miami and Tokyo rank second and third with an increase of 30.8% and 17%, respectively.

According to leading market analysts, Dubai’s elite districts will continue to gain momentum in 2023. 2022 is a great year for the luxury housing segment, and this trend is expected to continue in 2023. Various new projects with cutting-edge real estate will continue to attract wealthy buyers and overseas investors.

Popular areas for purchasing apartments

Jumeirah, Downtown Dubai and the Palm Jumeirah, where prices rose by more than 3.3%, 2.5% and 2%, respectively, remained the most popular areas for buying apartments in Dubai. DIFC, MBR City, Dubai Hills and Business Bay are other in-demand areas that have attracted investors and end users to apartments in Dubai.

Sought-after districts for buying villas

The Palm Jumeirah still dominates the villa segment, where property prices have increased by almost 3%. Villas in Jumeirah also showed an increase of more than 3.5%. In addition, District One, MBR City, Dubai Hills and The Meadows also attracted villa buyers.

Forecast for 2023

Dubai’s prestigious districts will continue to attract rich people and millionaires, and prices are expected to continue rising in 2023. The main housing market is expected to show a steady rise in prices next year.

For 2023, significant double-digit growth is projected at about 15% in the emirate’s prestigious districts, including the Palm Jumeirah, Emirates Hills and Jumeirah Bay Island. According to forecasts, in 2023, the average price increase in the main residential real estate market of the emirate will be up to 7%.

Given how the real estate market works, this figure certainly looks achievable. Areas known for luxury housing and affordable real estate are performing exceptionally well, paving the way for a successful end to 2022 and an equally successful start to 2023.