This week Willow Private Finance Directors, Lee Johnson and Wesley Ranger, have been visiting Dubai to meet with clients. In recent years interest in UK property from investors in the Middle East has grown significantly.

However, it hasn't been lost on us that Dubai's current and future property investment opportunities are becoming ever more attractive.

Dubai is known for its luxury and high-end lifestyle, making it a popular destination for real estate investment and development. The city has seen significant growth in recent years, and the future looks even brighter. Dubai-based housing market analytics firm Realiste has predicted that Dubai real estate is about to witness an even more aggressive bull run in 2023.

Year on Year Growth

Dubai's real estate sector has been growing in the last few years, with prices growing by 20-40% over the last 12 months. Properties in Trade Center First posted a 210% jump, reaching $65 billion in 88,000 transactions. Dubai is not just a popular tourist destination, but also a safe haven for foreign buyers. Its position as a safe haven is further strengthened by the growing geopolitical instability and energy crisis in other parts of the world.

Expected Price Rises in 2023

The coming year is expected to bring many surprises in terms of price rises in Dubai's real estate market. Currently, not-so-hot areas such as Wadi Al Safa 4, Hessayan First, and Al Yalayis are expected to see sharp rises in prices ranging up to 46%, while popular areas such as Trade Center First, Al Wasl Part 2, and Palm Jumeirah are expected to see only moderate growth. The Realiste study has predicted an overall price increase of 15% with some areas growing by up to 46%.

Attraction for Foreign Buyers

Dubai became one of the few beneficiaries of the massive geopolitical crisis that took place across the world over the past year. The city saw the biggest share of private wealth as Russian entrepreneurs, investors, and C-level professionals sought new homes. According to Dsight, more than 16% of Russian companies and entrepreneurs were relocated to Dubai in the first half of the year.

Benefit from the Qatar FIFA 2022 World Cup

In addition to the global crisis, the local real estate market also profited from the just-concluded Qatar FIFA 2022 World Cup. Dubai became the main beneficiary outside of Qatar due to its status as a tourist attraction and finance hub of the region. The increased demand fueled property prices in Dubai, with some areas seeing even bigger price increases.

Trendy Districts in Dubai

In the first part of 2022, trendy districts like Palm Jumeirah saw the highest demand for property. Palm Jumeirah, known for its waterfront experience, saw prices grow largely due to an imbalance between low supply and high demand. Other districts with green areas, such as Dubai Hills, also saw massive growth and attracted families who were seeking greener surroundings. Dubai Hills grew by 53% and approached AED 16 million in average price.

Conclusion

Dubai's real estate sector has experienced impressive growth in the last year. The Realiste study has projected that the Dubai real estate market will continue its upward trend in 2023, with the residential property segment expected to see a 46% growth next year. Dubai has benefited from the global geopolitical crisis and the Qatar FIFA 2022 World Cup, becoming a hot spot for real estate investment and development.