According to real estate analysts, robust off-plan interest would support a 13.5% increase in Dubai real estate prices in 2023. According to Knight Frank’s 2023 Premium Prediction report, Dubai’s premier residential prices are predicted to climb the quickest globally in 2023. Prices are expected to rise by 13.5% in the coming year due to high-net-worth individuals and foreign buyers’ increased interest in the market.
Off-plan sales have had phenomenal growth, according to Arabian Business, accounting for nearly 55% of overall sales volume in 2022 (up from 44% the previous year) and 56% of total sales value (up from 41% in 2021). High-end real estate in Dubai is expected to continue this increase, as the market is expected to continue to be driven by burgeoning international demand.
The Dubai Land Department registered more than 88,000 transactions in the first 11 months of last year. Compared to the same period in 2021, which saw a total of 54,674 transactions, this was more than 60% higher. In November 2022, off-plan residential real estate sales reached $3.7 B, a two-year high.
Investors’ primary focus is on apartments. Nearly 8,000 transactions involving apartments were made, which is an increase of almost 74% from November 2021. According to Abderrahmane El Alj, Chairman of Chaimaa Holding, Dubai Branch: “It is no longer true to say that an off-plan home will be less expensive than a ready-to-move home.
“Customers today want products of a far higher calibre; while prices may be more due to organic spaces, distinctive ideas, high-quality materials, and sustainable solutions, the products themselves are of a far higher calibre”. The emirate’s largest issue, according to Chaimaa Holding, is the lack of waterfront, premium, and ultra-prime homes.
