Dubai outperforms global prime residential market in 2022

The emirate ranked first by Savills in its Prime Residential World Cities Index for 2023

Dubai outperformed global prime residential markets in 2022 as capital values surged 12.4 per cent compared to 3.2 per cent average capital values across 30 major cities of the world, according to a latest report.The emirate, which ranked first by Savills in its Prime Residential World Cities Index for 2023, is expected to see steady growth in its capital values this year as the real estate consultancy expects up to 7.9 per cent price increase in the prime areas.

The prime capital values in Dubai hit $730 per square foot and remained one of the most attractive real estate markets in the world.

“The regional hubs of Dubai and Singapore are forecast to top the global price growth charts in 2023. Both cities will continue to see sustained inflows of high net-worth individuals, however they are not immune to higher interest rates and wider economic headwinds,” said Swapnil Pillai, associate director for Middle East Research at Savills.

He said Dubai’s forecast prime price growth of between six per cent and 7.9 per cent is lower compared with the 12.4 per cent growth it recorded in 2022.

“There is still some headroom for growth for Dubai, given its sustained demand levels and lower prime property per sq ft costs compared to other global markets,” Pillai said.