In Q1 2023, the capital value of luxury homes in Dubai increased.
The demand for luxury homes in Dubai remains strong in the first half of 2023. Will this trend continue in the future? Most likely.
Dubai ranks first in the world for demand in the premium real estate market, according to the residential property rating by consulting firm Savills. During the first half of 2023, luxury homes in Dubai increased in price by 11.2%, significantly outpacing their global counterparts. The forecast for the second half of the year predicts another round of price growth at 6-7%.
While the elite property deals in the West have seen a decline, Dubai's profits continue to rise. The Savills index shows that while the West has lagged behind, hotspots for investments in the Asia-Pacific region have remained resilient, with Singapore and Thailand leading the way.
In the first half of the year, Dubai witnessed over 1,500 residential property transactions priced above $11,761 per square meter, a staggering 67% increase compared to the same period in 2022.
Numerous new sales launches are expected soon, including the recent launch of Emaar The Oasis (near Arabian Ranches) with starting prices above AED 7.5 million (US$ 2.04 million). Investors are also drawn to the "islands" within Tilal Al Ghaf by Majid Al Futtaim. Dubai Hills remains the prime area of attraction for buyers seeking elite villas. The list also includes Palm Jumeirah and Jumeirah Bay, while Palm Jebel Ali and Dubai Islands are likely to garner interest in the near future.
Swapnul Pillai, Deputy Director of Research for the Middle East at Savills, commented: "The real estate market in the city offers a lucrative and unique opportunity to be an ideal investment destination. Population growth, a healthy economy with new business opportunities, potential for property price appreciation, and high rental yields are all appealing factors."
Dubai has created all the conditions that have made it the best place for real estate investments for buyers from around the world. It's worth noting that the pace of price growth in some areas has stabilized, but overall, housing prices have increased by 25-35% over these past 3 years.
