Analysts predict that Dubai property prices will continue to rise.
Real estate prices in Dubai may stabilise in 2023, but they have not yet reached their top, according to S&P Global analysts on Thursday.
According to CBRE, the average yearly rent for a family house in Dubai would rise by almost 25% to $76,817 (AED 282,150) in 2022.
The average apartment rent has increased by 27% to $25,912 per month (AED 95,168). At that time, the average price of apartments increased by 9%, while villas increased by 12.8%.
“We believe prices will stabilise throughout the year,” S&P Global’s Tatjana Lescova told the reporters. “But we have not achieved the highest level in terms of prices.” She also stated that as more people relocate to the Gulf metropolis, Dubai is becoming more “visible” worldwide.
“We believe Dubai will continue to attract new inhabitants, as will demand for residential real estate,” S&P stated in a statement. “As the emirate continues to draw new inhabitants, economic activity, population expansion, and comparatively reasonable residential pricing relative to other global centres will sustain demand.”
Following the conflict in Ukraine, Russians have flocked to Dubai to buy property, pushing up prices even higher. “It is a safe refuge for conflict-affected regions,” Lescova remarked. Prices and sales rose despite a robust economic rebound from the COVID-19 epidemic and the implementation of long-stay visas, according to a January study by property brokers Allsopp & Allsopp.
This resulted in a record-breaking $72.2 billion (AED 265 billion) in real estate sales in 2022, an all-time high and a 61 percent rise in transactions year on year.
The average transaction value climbed by 77 percent year over year. In 2022, the top three regions for villa and townhouse sales were Dubai South, Damac Hills, and Villanova, while the top three areas for apartment sales were Business Bay, Jumeriah Village Circle, and Downtown Dubai.
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