Millions of people come here every year, both for recreation and for permanent residence. The real estate market in Dubai is actively developing, and real estate developers dubai give preference to the luxury properties list which you can find at https://everhomes.ae/developers/. Today, many investors and visitors to the resort wonder: what awaits the real estate market in Dubai in 2023? Let's break it down and make a prediction.

The results of 2022
What analysts say about the real estate market in 2023
Let's summarize the results
The results of 2022
As the statistics show, Dubai real estate prices by the end of 2022 have increased markedly, but have not peaked as they did in 2014. Since January, the price of apartments rose by 8.5% and villas by 13%. If we take the average price per square foot, we see the following values: AED 1,149 ($312) and AED 1,359 ($370) respectively.

The most expensive apartments are offered in the Jumeirah area and the most expensive villas are in the Palm Jumeirah area. For example, in September 2022 was concluded an important deal: a plot of land on the famous paradise island was bought for 600,000,000 AED (more than $ 163 million). A couple of weeks before that, the most expensive villa in Dubai was also purchased here. Its value amounted to 302,000,000 dirhams.

One At Palm Jumeirah, Hausarh

Such deals show that the increase in prices does not stop potential buyers. This is due to exclusivity - such offers are few, so the demand for them only increases. In addition, the influx of wealthy investors and attracted a golden visa - after all, most often elite real estate was bought by foreigners. Some of them need it for permanent residence, someone - for rent.

Income from renting can be solid. Recently bought a villa at Palm Jumeirah that was rented for six months for 4 000 000 AED (a little over a million U.S. dollars). If you calculate the annual cost, you get a new record for the number of profits from renting Dubai real estate. The previous high of 2021 was 7 500 000 AED per year. Such an income brought a villa, located in the Emirates Hills.

More affordable housing - apartments - also enjoyed great demand. And in 2022, their sales reached a record level. The purchase of real estate was stimulated by a significant increase in rents. Peak values were recorded in August: the average price rose by 24.9% compared to the beginning of the year.

In the same period, the maximum values spread to luxury housing. The cost of renting a villa rose by 24.2%. In the remaining months until the end of the year, there were no significant jumps in property rental prices.

What analysts say about the real estate market in 2023
Real estate prices in Dubai are expected to continue to rise in 2023. This is due to the emergence of the golden visa - a preferential program for foreigners in one of the most prosperous cities in the world. As predicted by experts, the average cost of objects may grow by 20% for the year. If we talk about high-end housing, the price per square foot could grow by 13.5% for the year. Despite such a high rate of cost increases, demand should remain as high.

Analyst firm Knight Frank believes that in 2023 Dubai will show the highest rate of growth in property prices in the world. According to experts, the city will be able to surpass today's leaders - Miami and Paris. It is predicted that by the end of 2023, the cost of luxury real estate will grow by about 50% compared to 2021. However, even with this rate of growth Dubai's luxury housing is still considered one of the most affordable in the world.

Apartment prices in 2023 may increase by 20% during the year. This is likely to be due to the increased demand for housing and the continued growth of rents. With an unstable global economy, the influx of foreign nationals into Dubai will increase. The government is only stimulating and encouraging this: today, almost any foreigner can get a residence permit without any problems. Of course, this has a positive effect on the country's economy.

According to the forecasts of the Central Bank, in 2023, economic growth in the UAE will be up to 3.9%. In this case, the main revenue areas will remain tourism, real estate, hospitality and transport.

To sum up
Dubai's real estate market attracts the attention of millions of buyers. The year 2022 is the peak year for real estate sales, but even though prices have risen significantly, the number of transactions has increased significantly compared to 2021. Various factors contributed to this: the simplified visa system, increasing rents, and the unstable situation in the world.

According to the forecasts of leading analysts, in 2023 housing prices in Dubai will continue to grow. Thus, according to experts, on average, they may increase by up to 20%. If you believe the assumptions, the best period to buy housing - is the first half of the year, and by the end of the year the prices will be markedly higher.