Dubai Harbour and Other Areas of Interest on the Dubai Real Estate Market In 2023
The demand for apartments in Dubai Harbour, Bluewaters, Akoya Oxygen, and other parts of the city is still strong among investors. See what makes Dubai real estate so desirable and what the investment outlook is for 2023.
Why Prices Have Soared In Dubai In 2022?
In 2022, the price of apartments in Dubai increased by 70%, and villas – by 40%. The most obvious reason is the coronavirus pandemic. While all countries closed their borders from tourists, the UAE resumed flights in the summer of 2020. Citizens of different countries began to actively buy trips to the emirate and fall in love with the local culture, sunny climate, and high standard of living. In 2021, the emirate was honored to host the international exhibition EXPO-2020. It ran from October 1, 2021 to March 31, 2022. During this time, it was visited by 24 million people from 192 countries of the world.
Urban Master Plan
In the same year, Dubai authorities announced the Urban Master Plan 2040. According to it, half of the area of the emirate will be occupied by nature reserves, natural areas, and the number of inhabitants will increase by 2 times – up to 8 million. The authorities are already doing a lot of work to make it easier for foreigners to get a residence permit, develop a business, study and receive medical care. Citizens of other countries were allowed to fully own the shares of companies that are open in the UAE. Until 2021, half of the share was supposed to belong to one of the citizens. Dubai is also one of the most peaceful places on the planet. It always occupies the top positions in the international ratings of safe cities. A stable political situation reigns here, a benevolent attitude towards people of other nationalities and the desire for cooperation with the whole world. These points have become especially important in 2022.
The yield of local housing is 6-10% per year. Some developers prescribe this in the contract of sale. For comparison, real estate in London, New York, Singapore and Hong Kong brings about 4% per year. All these factors have increased the demand for housing in Dubai and triggered a sharp increase in prices in 2022.
Forecasts for 2023
Analysts predict that Dubai and Singapore will lead the world charts in real estate price growth this year due to a steady influx of wealthy buyers. They say that they will overtake even such world leaders in price growth as Miami. In February 2023, the most expensive properties sold in the emirate were an apartment in Jumeirah Island 2 for AED 410 million ($111.6 million) and a villa in Palm Jumeirah for AED 183 million ($50 million). Experts also note that the cost of housing in those neighborhoods, where there was a strong jump last year, will grow more smoothly in 2023. But in areas that have not yet reached their peak sales, prices will rise significantly. These include:
– Dubai Harbor
– Wadi Al Safa 4,
– Hessayan First
– Al Yalayis
The overall increase in the value of Dubai real estate will be 15-46%. Simply put, the emirate will continue to be very attractive to foreigners. The main reason is the increased demand for housing and the increase in the cost of rent due to the unstable situation in the world. In addition, the government is well stimulating the influx of foreign citizens to the UAE: for example, today almost everyone can easily apply for a residence permit in the emirate. Of course, this is very good for the economy of the emirate. According to the forecasts of the Central Bank, this year the economic growth in the UAE will be 3.9%. Tourism, real estate, hotel business and transport will remain the main income. Looking ahead, Oxford Economics predicts that by 2030 the number of households with an income of more than $250,000 per year will grow by more than 15% in each of the cities included in the Savills ranking. Dubai, of course, is also included: according to analysts, over the next 7 years, the number of households in the emirate will double and amount to almost 50,000. Well, if you trust the assumptions of experts, then the best period for buying a home is the first half of this year, since by the end of 2023 prices will become much higher. So if you have been planning to buy property in Dubai, now is the time.
Real Estate in Dubai
The website Emirates.Estate can provide you with a list of the properties available in the emirates. The algorithm will provide you a wide range of possibilities based on your dwelling preferences and budget.
Did this article help you? If so, please tell me in a comment what do you think about it.
Don’t miss any of our future video tutorials, follow us on Youtube. Like us on Facebook. Join our Best Deals Telegram Channel. Join our Android TV Box Firmware Updates Telegram Channel. Subscribe now to our newsletter.
