If you are thinking of buying a property in Dubai in 2023, the first thing you will want to know is, how much will it cost? The city remains one of the most attractive places to live in the world, thanks to its low taxes and increasing population, along with a market that can produce strong rental yields and relatively low property prices.
We take a closer look at the Dubai property market and how prices could change in 2023, giving you a better idea of what to expect over the coming months.
What are the current average prices for properties in Dubai?
The current average property prices in Dubai vary city, depending on where you want to buy and invest.
With the property market thriving in 2022, across the board average prices rose to 1,334,010 AED by the end of the year. Whilst things will be a little cooler in 2023, the city will continue to attract high-net-worth individuals from across the world looking to invest in new developments in prime locations.
In the year to February 2023, average apartment prices increased by 11.2% (Dh1,211 ($329.7) per square foot, while average villa prices rose by 13.6% (Dh1,432 per square foot).
Jumeirah is one the most expensive areas to buy, with the average price per square foot rising to Dh2,388 for apartments, and the highest recorded sales rate per square foot for villas recorded at Dh4,309 per square foot.
Is now a good time to invest?
Now is a good time to invest in properties in Dubai for a few reasons. In 2022, there was a 60% increase in total units sold, although that is expected to be lower for the remainder for this year.
Prices rose by 11% in 2022 and will rise by less than half that amount in 2023, with many estimating that property values will increase by around 5%.
Since 2020, the property sector in Dubai has continued to surge, with luxury units being snapped up by wealthy individual’s post-pandemic. There has been a wide range of expats investing in Dubai over the past couple of years, including buyers from Russia, the UK, the US, India, Italy, France, China and Pakistan.
Apartments have proven to be the most popular, which saw a 73% growth in 2022, with villas at the other end of the scale at 3%. This is due there being more apartments currently available on the market, for both ready and off-plan developments.
34,000 new properties were added to the Dubai market in 2022, with around 30,000-35,000 new units expected to be supplied in 2023.
Where is the best place in Dubai to invest in a property?
There are lots of fantastic places in Dubai to invest in a property, with some of the most popular including:
Palm Jumeirah is home to a growing expanse of beach resorts, apartments and villas and remains one of the most popular areas for property investment. It is positioned at the more affluent end of the market, with properties that offer the opportunity to live in real luxury.
In downtown Dubai you’ll find Mohammed Bin Rashid Boulevard, Burg Khalifa and the Dubai Mall, with the area renowned for its high-rise apartments. Gorgeous promenades, luxurious shopping malls and attractions like the Dubai Fountain make this a real property hot spot.
Another area of the city that attracts a lot of investment attention is Dubai Marina. It has been dubbed as ‘the new Dubai’ and is home to countless high-rise apartments and beautiful villas, with a wide array of retail and dining locations close to hand.
Damac Hills 2
It is anticipated that this eco-friendly neighbourhood will continue to grow over the coming years, offering lots of exciting investment opportunities. It has everything from restaurants and supermarkets to beaches and a growing array of attractions, making this the ideal residential spot.
Dubai Hills Estate
For anyone looking for a more family-friendly location, then Dubai Hills Estate should be high on your list. It is widely regarded as one of the fastest growing areas of investment, with new villas and apartments appearing on the market all the time, plus it also offers an 18-hole championship golf course.