Dubai’s 2023 real estate market is adjusting: ValuStrat Report
Dubai’s 2023 real estate market is adjusting: 7-10% price growth
According to a survey by ValuStrat, the prices of villas and apartments in Dubai have been trending upwards since the end of 2022, and they are still expected to rise by between 7 and 10 percent citywide this year due to high demand for luxury homes.
In the last four months of 2022, the monthly increase in the ValuStrat Price Index (VPI), which measures the performance of the market for residential properties across the emirate, fell to less than 1%. For the most part, freehold properties saw no increase or decrease in value during the past year.
According to the research that came out on Friday, "Dubai's residential market is demonstrating signs of price stabilization."
Capital values increased by 12.7% year over year (YoY), while rental values increased by 25% YoY.
After months of rapid appreciation, ValuStrat announced last November that Dubai apartment prices were leveling out.
ValuStrat predicts that residential property prices in the city as a whole will increase by an average of 7% to 10% by the end of this year, despite the fact that prices may be stabilizing.
The number of deals for ready units increased by 37.3 percent to 11,165 in the fourth quarter of 2022, while the volume of off-plan sales increased by 112.1 percent to 15,071 transactions.
China, a major source market for the emirate's tourism industry, has lifted its COVID-19 limitations, meaning that Dubai should expect a rise in visitor numbers this year. More than 80,000 delegates from around the world, including 140 heads of state and government, will descend on Dubai for COP28.
ValuStrat predicts that the newly unveiled UAE Tourism Strategy 2031 will increase investment in the tourism industry overall, encompassing the travel, aviation, and hospitality industries.