Dubai leads the 25-city forecast for 2023 with price growth expected to reach 13.5%. Still double-digit annual price growth, but at a more sustainable rate compared with the stellar performance witnessed over the past two years when the city’s relative affordability came into focus.
Rising mortgage rates and higher taxes are considered by the HNWIs polled to be the biggest threat to house prices. Higher taxes are the main concern for the wealthy in the Chinese mainland, while those in the UK, US and Singapore are most troubled by rising mortgage rates.
Residential values in Dubai’s prime markets, which encompass the neighborhoods of the Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, continue to strengthen, growing by 29% in the third quarter of 2022 alone. A shortage of new supply and strong inflows of ultra-high-net-worth individuals (UHNWI) who are targeting second homes in Dubai’s premier districts are behind the price rises.
Ultra-prime homes sales, i.e., homes priced at over US$10 million have had a record year in 2022. 152 ultra-prime sales were agreed in the first nine months of the 2022, eclipsing last year’s record of 93. Dubai is a world city and as such is to an extent vulnerable to global macroeconomic conditions. With increasing global economic uncertainty, Dubai is once again merging as a safe haven destination, just as it did during the height of the Covid-19 pandemic.
The UAE, along with its neighbor Saudi Arabia, is forecast to have one of the world’s fastest growing economies in 2022, with growth of 6-7%. This strong growth is echoed by the UAE’s non-oil sector Purchasing Managers’ Index readings which have remained in expansionary territory for two-years, highlighting the depth of nationwide business confidence.
For now, buyers and investors from locations across South America and Eastern Europe are joining the diverse mix of second-home buyers and investors from countries such as Monaco, Austria, Switzerland, India, Singapore, Hong Kong, the UK, the US and the GCC.
So wait no more. With a strong forecast, invest in Dubai now.
