Thursday, Feb 2, 2023
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Dubai’s real estate to expand 46% in 2023?

IFM_Real Estate
The local real estate market benefited from Qatar's 2022 FIFA World Cup

The recent analysis projects a 46% increase in Dubai’s real estate market next year. Realiste says Dubai property prices rose 20–40% last year and grew even more in some places. For example, Palm Jumeirah expanded by 59% and Trade Center First by 210%.

Dubai-based Realiste develops PropTech. As part of its Middle East North Africa growth in May 2022, it launched in the UAE and Saudi Arabia. The startup produces an artificial intelligence-powered real estate investment tool for New York, Abu Dhabi, Dubai, Riyadh, and London. The technology alerts asset owners when to buy or sell.

Dubai benefited from global geopolitical issues this year. This year, Russian entrepreneurs, investors, and top professionals sought new residences there. More than 16% of Russian enterprises and entrepreneurs moved to the UAE and Dubai in the first half of the year, according to Dsight.

The local real estate market benefited from Qatar’s 2022 FIFA World Cup. However, Dubai, a tourist magnet and financial centre, helped most outside Qatar.

Dubai will remain appealing to foreign purchasers seeking asset protection. Geopolitical upheaval and the energy crisis will improve its position. Alex Galtsev, CEO of Realiste stated that demand for the local property would rise in 2023.

Realiste analyzed data from December 2021 to December 2022. Dubai’s real estate market trends are examined, including places with the most significant growth, average property prices, and high- and low-priced neighborhoods. The report uses Realiste AI to predict Dubai’s property market in 2023.

Average prices in Dubai range from Dh425,000 in Wadi Al Safa 2 Part 1 to Dh12,042,618 in Al Safouh First Part 2. In addition, Reallste’s artificial intelligence ranked Trade Centre First and Al Wasl Part 2 as Dubai’s most costly neighborhoods.

In the first quarter, attractive beachfront districts (like Palm Jumeirah) had the highest property demand. As a result, low supply and high demand boosted prices in some areas.

Hadeeq Sheikh Mohammed Bin Rashid Part 2, popularly called Dubai Hills, multiplied. They drew families bored of living by the beach or canals and seeking parkland. As a result, Dubai Hills gained 53% and averaged Dh1,600,000 in price.

Most locations with the most growth in 2022 surpassed their price limit and will increase slowly in 2023. For example, Realiste AI analytics indicates that Palm Jumeirah’s average price would rise 5% in 2023.

Undervalued sectors that haven’t hit price restrictions will rise rapidly. For example, Jumeirah Village Triangle’s property market surged 62% in 2022, with average prices reaching Dh731,403. In 2023, house prices are predicted to rise 29%.

Dubai’s property market will rise next year. Realiste AI predicts local prices will increase by 10-15%, with certain places soaring by 46%.

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