Dubai's luxury real estate prices are forecast to rise in 2023
Dubai's luxury real estate prices are forecast to rise in 2023
The Dubai real estate market continues to attract wealthy individuals and foreign investors with its ultra-luxury properties. The three most expensive properties in the world sold in 2022 were in Dubai, according to Zoom Property Insights. According to the data, all three villas were located on Palm Jumeirah, which continues to be the preferred choice for ultra-wealthy investors and wealthy individuals.
In 2022, the community accounted for 30% of total real estate transactions in the luxury market segment (AED 20 million ($5.4 million) and above). In addition to Palm Jumeirah, Jumeirah Beach Residence and Emirates Hills are high-demand ultra-luxury properties in Dubai. This list also includes Tilal Al Ghaf, which has become popular due to luxury real estate.
Ata Shobeiri, CEO of Zoom Property, believes that in 2023, supported by growing demand from high-net-worth individuals, end users and foreign investors, the luxury real estate sector and the real estate market in Dubai as a whole will continue to grow. The economic growth of the emirate will also contribute to the success of its real estate as it represents a safe option for investors.
The largest luxury apartment deal was at Bulgari Lighthouse Island 2 for AED410 million ($112 million), according to Zoom Property Insights. In the course of development, another deal was registered for the sale of luxury apartments worth 119 million AED (32.4 million US dollars).
He was followed by:
- Aire Dubai, Al Wasl, where the property was sold for AED 119 million (USD 32.4 million)
- Dubai Water Canal, where property was sold for AED 73 million (US$20 million)
- Aire Dubai, Al Wasl, where the property was sold for AED62 million ($17 million).
The iconic Palm Jumeirah resort has so far registered two luxury villa deals worth AED125 million ($34 million) and AED183 million ($50 million).
Other areas where luxury properties have been sold include Tilal Al Ghaf, where properties were sold for AED90.1 million ($24.5 million), and Emirates Living (AED70 million and AED45 million).
The limited supply and lack of residential units in the luxury segment could slow things down, Shobeiri said, and deals could dwindle.
