In 2023, Dubai real estate price growth could decelerate even more
According to one of the largest real estate consultants in the city, residential property prices in Dubai are predicted to expand more slowly in 2023 following a record year that witnessed a more than 60% increase in the total number of units sold.
According to Reuters, prices are expected to increase by approximately 5% this year after rising 11% in 2022, which was a deceleration from a 21% spike in 2021.
The underlying demand has not been diminished by (higher) interest rates. However, they are undoubtedly affecting people's willingness and ability to pay more for real estate, according to Waind, who added that so far the market has handled higher rates and a strong dollar with grace.
Dubai's real estate market soared in 2020 as wealthy purchasers bought up luxury apartments and it reopened during the pandemic before biggest cities, reviving a sector that had been stagnant since the 2014–15 oil price crisis.
Following the conflict in Ukraine, a large influx of Russians bought homes in several of Dubai's most coveted neighbourhoods, including Downtown and the Palm Jumeirah.
Indians were the leading purchases among Dubai residents, followed by Britons, Russians, Italians, and Canadians. In the United Arab Emirates, most people are foreigners.
Villas, which spearheaded the start of the rebound in 2020, experienced just a 3% increase in volume sales last year, mostly because of a scarcity of supply "both in the ready and off-plan sectors," according to the report.
The industry has long been beset by worries of oversupply since a property bubble burst in 2009–2010, leading to a more than 50% drop in prices.