Dubai: After an exceptional first six months, can Dubai’s property market sustain the demand for its luxury homes through the second-half of 2023? All of the evidence seems to suggest that the city sure can do so.
Dubai ranked at the top globally for prime residential demand. This is according to the prime residential index rankings put out by the real estate consultancy Savills, which suggests that Dubai’s luxury residential space gained 11.2 per cent during H1-2023 and is well ahead of its global peers. And forecasts for the second-half of the year suggest another round of gains of 6-7 per cent.
Dubai’s gains are coming even as a slowdown creeps into luxury property deals in the West. The Savills’ index finds that while the West lagged, those investment hotspots in Asia-Pacific more than held their own, with Singapore and Thailand leading the way.
As for Dubai, 1,500 residential property deals were finalised at above Dh4,000 a square foot, a tally which is 67 per cent higher than in the same period for 2022.
The coming weeks should see a slew of new sales launches, with traction noticeable for Emaar’s recent launch of The Oasis (neighbouring Arabian ranches), with launch prices at over Dh7.5 million. There will also be continued attention on the ‘islands’ within the Tilal Al Ghaf from Majid Al Futtaim, while Dubai Hills remains a top draw. (Plus, there remains the Palm Jumeirah and Jumeira Bay, with Palm Jebel Ali and Dubai Islands likely to draw in heightened investor interest.) “The city’s real estate market offers the lucrative and unique opportunity of being an ideal investment destination,” said Swapnil Pillai, Associate Director, Middle East Research at Savills.
There is ‘a growing population, a healthy economy with new business opportunities, the potential for property value gains, and high rental yields are all draws’.
All of the conditions that positioned Dubai as a top-draw real estate investment choice for global buyers remain in place. The pace of value increases has stabilised at some locations, but not before they posted increases of 25-35 per cent in these 3 years.
