Dubai real estate market set to continue expanding in 2023

The real estate market in the United Arab Emirates, including that of Dubai, recorded a record number of transactions in 2022. According to experts, this trend is expected to continue in 2023.

More than 97,000 real estate transactions were recorded in Dubai last year, for an amount of 67.38 billion euros. Despite the global economic outlook, high net worth individuals have continued to settle in the emirate over the past 18 months. This has stimulated the luxury segment in particular.

"Between 2021 and 2022, the sales volume increased by 76% and it is expected that this will continue in 2023; of course, we will not see the same price increase as last year, but we expect that that volumes remain exactly at the same level as today," said Simon Baker, Managing Director of haus & haus Group. He feels the city ticks many boxes. "People come to Dubai because it's safe, clean, has excellent medical care and excellent schools," he said.

A still growing real estate market in Dubai

Cavendish Maxwell who compiles real estate data in the region says that this result is explained by a post-pandemic recovery. "As far as transactions are concerned, this is probably the second best year we have ever had," said Zhann Jochinke, director of market intelligence & research at the agency. "The market hit its lowest point at the end of November 2020 with the pandemic and the markets had to rebound: this is what explains this recovery, especially in the resale of properties, villas and houses; then, over the last twelve months, there has been a resurgence of interest in off-plan purchases," he explains.

Industry insiders agree that several factors explain why the city is doing better than other markets around the world. “We had a lot more buyers from Europe, from the UK, from France, from Switzerland, from Germany: in these countries, the taxes are very high, there are huge problems with inflation, ” notes Simon Baker.

Zhann Jochinke adds: "The main world markets - Europe, Hong Kong, Australia, the United States - are more influenced by their local context, their interest rates, their employment situation." According to him, Dubai and the Emirates are in a unique position. “It has a large expatriate workforce, there are many government initiatives to attract new residents and stimulate the housing market and there is no other place where so many new buildings are built. housing,” he describes.

As demand for properties increases, Dubai is expanding. In 2023, real estate buyers will once again contribute to giving it a new face.

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