The CEO at TopLuxuryProperty.com says, “Everyone thinks that real estate is a great industry to make a lot of money, but very few people knows trick.”
It is anticipated that the trend of increasing real estate prices in Dubai will continue through the year 2023. It is expected that the increase in demand from HNWIs and international investors will lead to an increase in both home prices and annual rents. The residential rental and purchase prices in Dubai reached all-time highs in December, contributing to the overall positive tone of the city’s real estate market, which finished the year on a strong note. Top Luxury Property has already started dealing as it is the right time to make money out of the price increase in the market.
The most recent data from CBRE demonstrated that the number of real estate transactions in Dubai increased to 8,662 at a rate that was 63% higher than the previous month. This was primarily the result of an increase in transactions on the secondary market of 35.4% and an increase in transactions on the off-plan market of 92.5%. In 2009, there were 81,182 residential transactions recorded in the emirate; in 2022, there were approximately 90,881.
According to the findings of the survey, the average cost of a villa in Dubai was Dh1,385 per square foot during the month of December, while the average cost of an apartment was Dh1,168 per square foot during the same time period. Because apartment and villa prices are currently 21.5% and 4.2% lower, respectively, than their previous peaks, they have not yet eclipsed the record highs that were reached in 2014.
According to the report, Palm Jumeirah has the highest sales rate per square foot at Dh3,921, while Jumeirah has the highest sales rate per square foot at Dh2,324. Also, the splendid residential area of Jumeirah has observed the greatest sales rate per square foot in the apartment segment.
The rental market in Dubai likewise had a tremendous increase in the preceding year up to December 2022, with average rents soaring by 26.9 per cent over that time period. This increase is reflective of the larger pattern of rising costs that have been observed in Dubai. According to the results of the survey, the annual rental rates for apartments in Palm Jumeirah averaged Dh248,452, while the yearly rental rates for villas were determined to be Dh1,016,956.
Apartments in Palm Jumeirah have had the greatest price growth over the past few years, equivalent to a 5% increase over the previous price. Following that, in quick succession, MBR City, Meydan City, and Living Legends came into being. The typical price of a home in these jurisdictions saw a year-over-year increase of 4.7% during this time period.
The price of villas in Emirates Hills increased at a rate of 4.6% higher than the previous year. Mudon, which accounts for 4.1% of the total, Jumeirah Village Circle, which accounts for 3.9%, and MBR City, which accounts for 3.1%, are also highly important. Mudon has the most number of people per square kilometre.
The Old Town, Dubailand Residential Complex, Green Community (DIP), and Downtown Dubai saw the highest yearly growth rates for apartment rentals, with 4.9%, 4.6%, 4.5%, and 4.4%, respectively, in comparison to other areas of Dubai. The top four places for rental villas are as follows: The Sustainable City (4.9%), DAMAC Hills (Akoya) (4.8%), The Villa (4.8%), and Reem (4.7%). (4.7 per cent). In addition to the locations indicated above, Top Luxury Property has anticipated that the real estate markets in Jumeirah, JBR, Arabian Ranches, and Dubai Marina will be quite active in the year 2023.
Even though these data may be comforting to landlords who had observed almost six years of dropping rental prices up until 2022, the high rate of expansion will continue to have an impact on demand, as indicated by the seven per cent decline in the total number of new Ejari registrations in 2022. This decline indicates that the high rate of expansion will continue to have an impact on demand.
