Can Dubai’s real estate market maintain the demand for its luxurious properties over the second half of 2023 after an exceptional first six months? Everything seems to point to the city being able to do this.
Dubai ranks first in the world for demand for prime residential real estate. According to the premier residential index rankings published by the real estate consultancy Savills, Dubai’s luxury residential market outperformed its international counterparts by a wide margin, rising 11.2% during H1-2023. Furthermore, predictions for the second half of the year point to another round of rises of 6% to 7%.
Gains in Dubai are occurring even while luxury real estate deals in the West see a halt. The investment hotspots in Asia-Pacific, led by Singapore and Thailand, more than held their own as the West lagged, according to the Savills’ index.
In Dubai, 1,500 residential real estate transactions were finalized at prices higher than Dh4,000 per square foot, a figure that is 67% higher than in the same period for 2022.
With launch prices of over Dh7.5 million, Emaar’s latest launch of The Oasis (neighboring Arabian pastures) likely witness a flurry of fresh sales launches in the coming weeks. The ‘islands’ within the Tilal Al Ghaf will continue to gain attention from Majid Al Futtaim, and Dubai Hills will continue to be a major attraction. (Plus, there remains the Palm Jumeirah and Jumeira Bay, with Palm Jebel Ali and Dubai Islands likely to draw in heightened investor interest.) “The city’s real estate market offers the lucrative and unique opportunity of being an ideal investment destination,” said Swapnil Pillai, Associate Director, Middle East Research at Savills.
Population growth, a thriving economy with new business prospects, the possibility of property value increases, and strong rental yields are all attractions.
The same factors that made Dubai a top choice for foreign investors looking to invest in real estate still apply. In some regions, the rate of value increases has stabilized, but not before they saw gains of 25–35% over the previous three years.