Dubai’s prime residential property market is expected to experience the fastest growth internationally in 2023, according to a study by Knight Frank, a London-based real estate agency.
Knight Frank’s 2023 Premium Prediction report projects that residential property prices will increase by 13.5% this year in Dubai, driven by a strong interest in off-plan real estate from high-net-worth individuals and overseas buyers. Off-plan property refers to uncompleted (in progress) structures.
In 2022, off-plan sales accounted for 55% of overall sales volume and 56% of total sales value, a significant increase from 2021. The Dubai Land Department registered over 88,000 transactions in the first 11 months of last year, a 60% growth from the same period in 2021.
In November 2022, off-plan residential real estate sales reached a two-year high of $3.7 billion, with investors focusing primarily on apartments. Nearly 8,000 transactions involving apartments were made, a 74% increase from November 2021.
According to the report, high-end real estate in Dubai is likely to increase further in the following year, owing to rising international demand.