Dubai takes the top spot for gains in luxury home values in H1-2023
After a spectacular first six months, would Dubai’s real estate market be able to sustain the demand for its opulent residences over the second half of 2023? The city appears to be able to accomplish this, according to all data.
When it comes to the demand for luxury residential real estate, Dubai leads the world. The luxury home market in Dubai outpaced its worldwide competitors by a considerable margin during H1-20223, growing 11.2%, according to the top residential index rankings released by the real estate consultancy Savills. In addition, forecasts for the second half of the year indicate that there will be additional increases of 6% to 7%.
Gains are being made in Dubai while luxury real estate agreements in the West come to an end. According to the Savills index, the investment hotspots in Asia-Pacific, led by Singapore and Thailand, more than held their own while the West lagged.
Compared to the same period in 2022, 1,500 residential real estate transactions in Dubai were completed at values above Dh4,000 per square foot.
Emaar’s most recent launch of The Oasis (adjacent Arabian pastures), with start prices of over Dh7.5 million, is set to be followed by a frenzy of other sales launches in the following weeks. Majid Al Futtaim will continue to pay attention to the “islands” within the Tilal Al Ghaf, and Dubai Hills will remain a popular destination. (Additionally, the Palm Jebel Ali and Dubai Islands are projected to spark increased investor interest, in addition to the Palm Jumeirah and Jumeira Bay.) “The city’s real estate market offers the lucrative and unique opportunity of being an ideal investment destination,” said Swapnil Pillai, Associate Director, Middle East Research at Savills.
Attractions include a growing population, a booming economy with exciting new business opportunities, the potential for property value increases, and high rental yields.
The same factors that made Dubai a top choice for foreign investors looking to invest in real estate still apply. Some places have seen a stabilization in the rate of value growth, but not before they had gains of 25–35% over the previous three years.