Dubai prime residential market set for world’s strongest growth in 2023

With prime homes transacting for around $800 per square foot, Dubai is one of the most ‘affordable’ luxury residential markets in the world

The prime residential in Dubai will post strong double-digit price growth and lead global markets in 2023, says a latest report.

The price in prime residential areas, which encompasses the neighbourhoods of Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, are set to experience a 13.5 per cent increase next year — the strongest price growth globally as cities like Paris, New York and Singapore will only be able to achieve single-digit growth, according to Knight Frank’s 2023 Prime Predictions.

The global property consultancy, in its Dubai edition said luxury properties in the emirate will remain in demand and prices are likely to end the year around 50 per cent higher than 2021.

Faisal Durrani, partner and head of Middle East Research said Dubai’s prime residential market has and continues to be a global outlier, with record price growth in 2022, albeit this has been from a low base.

“Prime values are being fuelled by Dubai’s safe-haven status, an exceptionally diverse range of international ultra-high-net-worth individuals in search of luxury second homes, combined of course with the government’s world-leading response to the pandemic, which has spurred business confidence, Durrani said.

“Adding to the city’s appeal is its relative ‘affordability’, with prime homes transacting for around $800 per square foot, making Dubai one of the most ‘affordable’ luxury residential markets in the world. Overall residential prices trail 2014 peak levels by 21.4 per cent,” he said.