High-net-worth individuals (HNWI) continue to invest heavily in the real estate market in Dubai. Resultantly, it’ll continue to dominate all worldwide price charts in 2023. However, rising interest rates will weaken local demand and slow down this year’s price increase.
It’s estimated that the prices of luxury residences will increase by 6-7.9% in UAE, the highest in the world, as per the property firm, Savills.
Despite slow down, Dubai will outplay Miami and Milan, which will see an increase of around 4-5.9%. It’ll also outrank Cape Town and Rome, likely to see a growth of 2-3.9%.
Savills reported that Dubai’s price growth will stagnate a bit compared to last year. Interest rates are experiencing a rise since 2022, with UAE implementing a 25 basis-point hike last month.
Last year, Dubai’s property price increase was 2nd highest in the world at 12.4%, while Miami topped the list with a growth of 25.4%.
