The war has been good for Dubai and the UAE. Right now the current conflict between Russia and Ukraine has seen an onslaught of Russians buying up Dubai property very quickly. In 2022, the Russian wave was responsible for 15% of all real estate transactions in the city.
What this has done is help keep development booming with a predicted construction of an additional 35,000 units for 2023. The biggest winner in all of this construction and purchase fervour has been apartments.
The demand for more apartments is soaring at this time. However, the rise in house value may not be as good as it has been in past years. It is predicted that values will only rise about 4.5% in 2023.
The housing prices will vary from neighbourhood to neighbourhood as well as from apartments to villas and townhouses. The news still looks good for the housing market even though prices seemed to have slowed over 2022. Here are the average housing prices for different Dubai neighbourhoods in AED.
1. Palm Jumeirah- Prices range between 300,000 to 25,00,000 depending on the type of property you are looking to purchase.
2. Dubai Marina- You can expect to pay between 478,000 to 20,000,000.
3. Dubai Hills Estate- The prices will range from 719,000 for a studio while a 3-bdrm villa may fetch 2.69 million and a 6-bdrm home is costing roughly 95 million.
4. Business Bay- Prices start at around 763,000 and go up to approx., 2.0 million.
5. Creek Harbor- Has the lowest housing unit prices at about 1.3 million and those go up to about 3.0 million.
As you can see, it will depend on which section of the city you buy in that will determine your overall costs.
The first thing to be aware of is that all predictions are going to be subjective and based on any data that the person making the predictions has available. For example, one company used an AI technology platform to predict that housing prices in Dubai should rise 46% in the coming year.
Other companies are not so hopeful and one predicted only about a 20 to 40% increase in housing prices for 2023. The second thing to be aware of is that not all neighbourhoods will see the same increase.
For example, the Trade Center First increased by 210% while Palm Jumeirah by only 59%. Location is going to be the key to how any property you invest in will rise in value. Do not be surprised if your home’s value does not increase by that much.
Some companies are only predicting a 4.5% price increase over the next few months. There is also talk that global prices are falling and not to expect to see huge increases in value like the past few years have brought.
Even though there may be a cooling-off period, the prices for homes in Dubai should remain stable.
It is hard to say as predictions are more like wishful hopes. No one can predict the future as real estate doesn’t always follow what experts have predicted. For example, prices for some homes have fallen about 2.7% even though there has been an increase in home sales by 43%.
On the other hand, there are companies predicting that housing prices will increase by 13.5% this year and be 50% higher than in 2021. This prediction is made because Dubai is thought to be a safe haven for real estate investing as well as having a resilient market.
One company is not as hopeful as that and predicts only a 5 to 7% increase in housing prices for 2023. The real estate future is determined by who you are willing to listen to. You will get all sorts of predictions depending on the company making the forecast.
One example, which is echoed by a couple of companies, is that price increases are expected to slow down for 2023 and get even slower for 2024. These figures should give you a good idea of what to expect in the Dubai market.
One should make their investment decisions carefully and make plans for the future with the guidance of top estate agencies providing good advice.
This is going to be a growing trend as real estate valuation companies try to outdo each other in getting a handle on the future of the real estate industry in Dubai.
One company has already employed artificial intelligence technology to create a promising future for this area. The artificial intelligence investigation predicts that three neighbourhoods will see an almost 50% increase in housing value.
Those three neighbourhoods are identified as - Wadi Al Safa 4, Hessayan First, and al Yalayis. Whether this prediction will come true or not remains to be seen.
But the competitive nature of Dubai real estate has driven many companies to use whatever tool is at their disposal to make their mark in this industry. What has helped fuel this AI prediction has been the rise in demand for ultra-luxury homes in Dubai.
Along with AI, many experts are using the figures for ultra-luxury home sales as the benchmark for their 2023 predictions. It is hard to say if the demand for those high-level homes will continue throughout the year or not.
Making predictions is always risky business. You never know what the future will hold and some people will end up being embarrassed by what they claimed before the start of the year.
To get to the real value of Dubai real estate, give our company a call. We have over 10 years of real estate experience in Dubai and can help you see the real value of the homes you want to purchase in that city.
Our expert agents will also provide some news on how the housing values will go throughout 2023 and beyond. Call us today for the right help.
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