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Dubai real estate market is undoubtedly one of the most attractive and lucrative markets in the world. According to the specialized predictions, the market will experience a rise in demand from domestic and international investors as Dubai continues to allure businesses and investors.
If you want to invest in the Dubai real estate market, then the right time to purchase is now! The market has experienced considerable growth over the past few years. Furthermore, the Dubai real estate market is predicted to continue growing.
New supply is just entering the market, so the price of properties will rise gradually, by 20 to 25 percent annually. The number of investors in the Dubai real estate market is very much, so the price of properties will be high.
The effect of interest rates on increasing the value of properties
The impacts of higher interest rates on the Dubai real estate market are predicted to change, according to experts. In the US, mortgages do not change for longer periods.
Despite the variability of interest rates in Dubai, experts still believe that the Dubai real estate market will continue to grow in 2023. Additionally, a lack of inexpensive houses will continue to raise rents, resulting in an increasing overall cost of living.
The UAE’s economy is predicted to grow at a rate of two percent in 2023, according to the statistics. The population of the UAE is predicted to increase by an average of two percent.
In 2022, the Dubai real estate market was successful, with prices growing considerably. The demand for properties was very high and many people invested in the real estate market in Dubai.
The rise of sustainable and green buildings on the growth of the Dubai real estate market
Dubai, renowned for its lavish lifestyle, has considerably welcomed the trend of sustainable and green properties in recent years. This growing trend can be ascribed to the endeavors of the Dubai government to decrease the city’s carbon impression and upgrade sustainable development.
The effect of the rise of remote work on the Dubai real estate market
The rise of remote work following the COVID-19 pandemic has considerably influenced Dubai’s residential real estate market.
Since many people are working from home, there has been an increase in demand for larger and more commodious homes since people look for more convenient and relaxed living arrangements.
This has resulted in the rise in prices of villas and townhouses, especially in suburban areas, and demand for houses with outdoor space and home offices.
The switch towards remote work and comfortable housing has remarkably changed the residential real estate market. As companies growingly welcome remote work and use more flexible working models, the need for big, traditional office spaces decreases.
The effect of the growth of prop-tech on the Dubai real estate market
Dubai, one of the flourishing real estate markets, has seen a considerable rise in the use of prop-tech solutions in recent years. Prop-tech refers to the adoption of technology to change and make more efficient real estate transactions, from purchasing and selling to renting and property management.
The growth of prop-tech has had a deep impact on real estate in Dubai, making it more productive, clear, and accessible to more people. The prop-tech market is expected to experience significant growth in the coming years.
Dubai property market prediction for 2023
It is predicted that real estate growth in Dubai will continue in 2023. The initiation of the golden visa is one of the main reasons. The visa allows expats to take full advantage of different benefits in one of the world’s most booming cities.
Experts predict a 20% rise in average property prices during the year, with the price per square meter for top-quality accommodation increasing by 13.5% in 2023. Despite the high level of price, demand for lavish real estate will remain high.
The Dubai property market will see the most unprecedented price growth rates in the world in 2023. According to the predictions, the city will perform better than Miami and Paris.
By the end of 2023, the price of top-quality real estate is anticipated to rise by 50% in comparison with 2021. However, lavish accommodation in Dubai is still more inexpensive than anywhere else in the world.
Flat prices will increase by 20% in 2023. This will occur because of the high demand for accommodation and rent rises. Unlike the universal economic instability, more and more foreign investors will relocate to Dubai.
The UAE government is facilitating and encouraging immigration: today almost any foreign citizen can easily get a residence permit here. Needless to say, this all has a positive effect on the country’s property market.
According to the predictions of the Central Bank of the UAE, the country will record economic growth of up to 3.9%. Simultaneously, the sectors that play the most important role in the UAE economy still include:
- Tourism
- Real Estate
- Hospitality
- Transport
Conclusion
Dubai’s real estate market attracts millions of purchasers every year. Sales reached their highest point in 2022, despite the increase in real estate prices.
The number of finalized deals rose significantly compared to 2021. This trend can be ascribed to several factors such as simplified visa rules, a rise in rent, and universal instability.
Notable experts agree regarding their real estate market predictions that property prices in Dubai will continue to increase in 2023.
The rise could hit 20% on average. Taking everything into consideration, now is the best time to purchase property in Dubai. By the end of the year, the prices will increase even further.
