Dubai to Outshine London’s Property Sector in 2023

According to a recent market research report, Dubai’s real estate market is expected to outperform London in 2023, thanks to steady growth in property prices and occupancy rates.

The study, conducted by Dubai-based prop-tech Realiste, predicts that high-end home prices in Dubai will increase by 6.7% to 20.3% this year, while London’s prime property market, especially in the luxury sector, is only expected to see a 3.5% increase.

Dubai’s property market is set to thrive due to ongoing developments, rising occupancy rates, and the potential for high annual profits.

However, London’s property market faces challenges in 2023, primarily due to high inflation and rising interest rates, which could slow down growth.

Despite the challenges, Dubai offers several advantages to investors, including lower taxes, higher yields, and more affordable prices. However, there are also potential obstacles to consider, such as currency fluctuations, geopolitical uncertainties, and legal complexities.

The research report highlights significant growth in Dubai’s off-plan property market, particularly in prime neighborhoods like Palm Jumeirah, Port de la Mer, and Safa Park.

The study identifies specific projects, such as URL Infinity, Como Residence, and Domakla Guntz, as excellent investment opportunities with potential annual profits ranging from 20%-30%.

According to Realiste’s two-year forecast, the top-performing districts in Dubai include Bluewaters Island, Al Kharaan, and Dubai Harbour Part 1. The current average prices range from AED 2.9 million to AED 7.2 million in these areas.

In contrast, the London property market is expected to remain stable in 2023, with moderate growth in property values. Realiste predicts a 3.5% increase in the prime London property market this year, driven by demand in the luxury sector.

Central areas like Kensington and Chelsea and Westminster, where many buyers pay in cash, are expected to maintain stable prices. However, properties in less central areas and lower price brackets, typically below £1-2 million, may be negatively affected by recent increases in mortgage rates.

Crafts international and UAE news into concise pieces, catering to today's busy readership.



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