A new wave of migration to Dubai that will lead to high demand for property in 2023 and beyond is being seen now. In 2022, the population of Dubai exceeded 3,500,000 people, and experts believe that this will grow to 5,900,000 by 2040. Such a tendency will lead to increase in demand for properties for sale and to rent.
As for the possibility of cost changes, in the UBS Bubble Index 2022 which considers the risks of a bubble in property markets, it mentioned that the Dubai real estate sector is one of the most unheated around the globe. Even though prices in the emirate have been growing for the last two years after seven years of decline, they continue being quite attractive with an average rental return of 6.5%.
According to a Knight Frank study, property prices in Dubai will rise by 13.5%
in 2023. This kind of growth will be the highest among the 25 metropolitans around the world that were included in the analysis. In addition, Dubai is the leader by a wide margin, according to the study, as Miami, which took 2nd place, as well as Dublin, Lisbon, Los Angeles, Madrid and Paris, which are all 3rd from the top, prices will increase by 5% and 4% respectively. At the same time, ultra-luxury residential units will be in higher demand, according to experts.
Among the prospective areas are Emaar Beachfront
, which is a new gated community that boasts a favourable location on the coast of the Arabian Gulf between Palm Jumeirah and Mina Seyahi. The community from Emaar Properties will include 27 residential skyscrapers and residents will be provided with access to a 1.5 km long private beach, as well as a 1,400 berth marina, dining options, various social infrastructure objects and plenty of entertainment activities. The potential ROI here is about 8%.