The coming year, however, is projected to throw up many surprises in terms of price rise, with currently not-so-hot areas such as Wadi Al Safa 4, Hessayan First and Al Yalayis expected to see sharp rises in prices.
Dubai real estate is predicted to witness a more aggressive bull run in 2023, with the residential property segment projected to see a 46 percent growth next year, a latest research said.
The coming year, however, is projected to throw up many surprises in terms of price rise, with currently not-so-hot areas such as Wadi Al Safa 4, Hessayan First and Al Yalayis expected to see sharp rises in prices ranging up to 46 percent, while hot favourites of 2022 such as Trade Center First, Al Wasl Part 2 and Palm Jumeirah expected to see only moderate growth in prices.
Property prices in Dubai grew on average by 20-40 percent over the last 12 months, with properties in Trade Center First posting up to a whopping 210 percent jump.
Most of the areas which saw the sharpest growth in 2022 reached their price limit and will grow moderately through 2023. In contrast, the underestimated areas that have not hit their price limits yet will see tremendous growth.
The study projected the Dubai real estate market to see an upward trend in the following year, with an overall price increase of 15 percent, with some areas growing by up to 46 percent.
Dubai will remain attractive to foreign buyers who are seeking to shield their assets. It will strengthen its position as the geopolitical instability and energy crisis grow.
As a result, there will be a further boost in demand for local property and the market in 2023.
The average residential property prices in Dubai now range from AED12 million in Al Safouh First to AED400,000 in Warsan First, the study said.
Realiste said this year Dubai became one of the few beneficiaries of massive geopolitical crises across the globe.
It saw the biggest share of private wealth this year as Russian entrepreneurs, investors, and c-level professionals were seeking new homes," the research based on data collected over 12 months between December 2021 and December 2022 said.
According to analytic agency Dsight, more than 16 percent of Russian companies and entrepreneurs were relocated to the UAE – Dubai in particular – in the first half of the year.
Apart from the global crisis, the local real estate market profited from the just concluded Qatar FIFA 2022 World Cup.
“Dubai became the main beneficiary outside of Qatar due to its status as a tourist attraction and finance hub of the region,” the study said.
The avid demand fuelled property prices in Dubai, with some areas seeing even a bigger splurge.
In the first part of 2022, trendy districts like Palm Jumeirah, showcasing their ‘next to the waterfront experience’, witnessed the highest demand for property.
Prices in those districts also grew largely due to an imbalance between low supply and high demand.
Districts with green areas like Hadeq Sheikh Mohammed bin Rashid Part 2 – also known as Dubai Hills – also saw a massive growth.
“They attracted families who were tired of living next to the bay or canals and were seeking places surrounded by parks. Dubai Hills, for instance, grew by 53 percent and approached AED16,00,000 in average price, the study said.