After a period of significant growth over the past year which saw 2022 record the highest volume and value of property sales ever, 2023 is certainly looking like the perfect time to invest in some prime Dubai real estate. And, believe us, we’re not just saying this because of the city’s glitzy skyline, vibrant culture, or luxury living (although they all definitely help!).
The facts, figures, and our very own in-house crystal ball have revealed that 2023 is the time to buy property in Dubai. How so? Keep reading to find out why now is the time to make a sound financial decision and invest in Dubai real estate!
Dubai Real Estate At A Glance
Looking into 2023, Dubai’s real estate sector is set to maintain its ongoing growth due to various factors, from foreign investors pouring money into the emirate’s residential real estate sector to major economic upswings. For that reason, the city is experiencing a property boom, unlike any other major city in the world, with demand for Dubai real estate soaring at an unprecedented level.
Thanks to last year being the best-performing year for the Dubai real estate sector, the Dubai property market has now secured its position as a leading real estate destination, paving the way for an even stronger 2023. In fact, January 2023 has already started off as the strongest month of January on record, in terms of both sales volume and value, with total sales value reaching over AED 28B.
In light of these developments, let’s delve into the driving forces behind this incredible growth in 2022, along with how and why this is set to persist in 2023:
- Huge Influx of HNWIs
An especially enticing destination for the elite, the emirate has roped in a large number of wealthy foreigners looking to buy property in Dubai. Indeed, Dubai has become a millionaire magnet over the past couple of years, which has consequently led to a spike in luxury property sales, particularly in areas like Palm Jumeirah, Dubai Marina, Downtown Dubai, Jumeirah Beach Residence (JBR), etc.
Considering that there was an 85% increase in the demand for luxury properties in 2022 compared to 2021, this trend is expected to continue in 2023, with Knight Frank’s 2023 Prime Prediction report indicating that prime residential prices are set to rise 13.5% this year, the strongest growth globally. Moreover, the report noted that Dubai’s relative affordability in the luxury segment is also credited with drawing a growing number of high-net-worth individuals and millionaires, with property prices in Dubai being far lower as compared to other financial hubs.
- Favorable Market Conditions and Yields
In the last decade, Dubai has lured the elite from both near and far, translating to a surge in rental activity. That said, Dubai’s real estate market offers a better return on investment (ROI) on properties for international investors, outshining even major global cities such as New York, London, and Hong Kong. In fact, areas like Downtown Dubai, Dubai Marina, and Jumeirah Village Circle (JVC) offer even higher rental yields of 7-8%. With a rise in property value, possibilities for returns are sky-high in the emirate’s real estate market and an alluring enough reason to invest in Dubai.
- Supportive Government Initiatives and Regulations
The government has always done everything in its power to make the property purchase process a breeze for those looking to buy property in Dubai. A host of incentives include the UAE’s Golden Visa regulations to attract talent and investors, a strict legal framework, zero property tax, and data transparency initiatives by the DLD. This has helped to cultivate an overall investor-friendly environment for real estate investment in Dubai, even in the midst of economic turbulence.
- Economic Resilience
It’s also important to recognize that Dubai has had a long history of economic resilience, as we saw most recently during the Covid-19 pandemic. The city has always been a center for trade and commerce, and its diverse economy has allowed it to weather the storms of economic uncertainty time and time again. As a result, Dubai’s real estate market is being driven by this ever-growing and resilient economy, cementing its ‘safe haven’ status for investors worldwide.
- Fast-Growing City
Both in terms of population and economy, Dubai is growing at an extraordinary pace. Dubai is racing ahead as one of the fastest-growing cities in the world, boasting a population of over 3 million, even growing by 2% in 2022, more than double the global average growth rate. The city’s growth is largely attributed to its business-friendly climate, fueled by its strategic location and thriving economy, among other favorable pull factors. For any property investor, investing in Dubai is a no-brainer as this growth translates into a high demand for real estate.
With a booming property market, favorable market conditions, supportive government initiatives, and a resilient economy, Dubai’s property market is set to hit a new peak in 2023 on the back of an expected surge in rental activity, particularly from HNWIs.
So, if you’re a real estate enthusiast or aspiring investor, now is the perfect time to invest in Dubai real estate! There are plenty of opportunities to make a profit through Dubai real estate. One place to start is right here on SmartCrowd. Our real estate crowdfunding platform allows you to invest in Dubai real estate from as little as AED 500 from anywhere, at any time!
So, whether you’re looking to buy a property in Dubai, as a long-term or short-term rental, with a particular budget set in mind, then there’s definitely something for you on the platform. Browse our properties now!
Disclaimer: This blog is intended solely for educational purposes and shouldn’t be treated as financial advice. We suggest you always conduct thorough research, perform your own due diligence and consult with financial advisors to assess any real estate property against your own financial goals.