Report: Dubai real estate property prices to grow by 5% next year

The residential market for premium properties in Dubai is on the cusp of substantial growth, spurred by a constrained supply and renewed interest from major investor markets like China and India, as detailed in a recent analysis. Knight Frank's latest report forecasts a 5% appreciation in property values within Dubai's elite areas such as The Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island in the upcoming year, while a 3.5% growth rate is anticipated for the broader residential sector.

“Dubai’s prime markets remain highly sought after and are responsible for 4.8 per cent of transactions by the total value that have taken place in the first nine months of 2023,” observed Faisal Durrani, partner and head of research for Mena.

Dubai's real estate market has bounced back vigorously from the pandemic's impact, buoyed by government measures like residency permits for retirees and remote workers, along with the extension of the 10-year golden visa scheme. This recovery is evidenced by the highest quarterly price surge in a decade during the third quarter, propelled by heightened demand, as per a ValuStrat report.

The market for ready-to-move-in homes remains predominant, with secondary market sales accounting for 51% of the transactions from the first to the third quarter. This reflects a market heavily influenced by end-users and investors seeking second homes, according to Mr. Durrani. Knight Frank reports that off-plan sales hit Dh100 billion, and sales of completed homes reached Dh104.9 billion in the first nine months.

Source: The National News