Business Bay, JVC and Dubai Marina to drive the Dubai property market in 2023

Comprised of little beyond dunes, decrepit forts and coastal towns a century ago, the UAE has grown into a show-stopping, headline-grabbing destination which offers an enticing blend of traditional Islamic culture and the latest in technologically advanced modern-day living. The country is divided into seven emirates; however, the focus is primarily on Dubai and Abu Dhabi. Both have an ever-expanding assortment of luxury accommodations, gourmet restaurants, premium nightclubs, and fantastic shopping centres. The 7-star hotel, Burj Al Arab, the skyscraper, Burj Khalifa, and pure white beaches with the azure ocean are among Dubai’s most recognisable vistas.

Dubai – A supremely built emirate

The Downtown fountain show equals that of the Bellagio, and the massive shopping malls rival any in the world.?Dubai real estate, like tourism, has thrived. Across the world, the sector has delivered attractively designed and superbly built residential, leisure, and hospitality projects, offices, retail centres, hotels, and recreational places that improve people’s quality of life. Dubai’s single-minded goal is to ensure that its projects are completed to the greatest standards and that its residents have a better quality of life.

To substantiate its aforementioned claim, this sector will continue to flap its wings and throttle its engines to set and reach new benchmarks for exceptional levels of growth.?Dubai real estate?experts predict that property prices and rental values will rise due to increased demand from HNWIs and overseas investors. The Dubai property market’s average property prices and rent are forecast to increase exponentially in 2023.?Seeing the demand and rise in property prices,?46% growth is projected for Dubai real estate sector in 2023.

Converging the lens towards Dubai real estate’s future in?2023

In 2023, an estimated 20% price increase is projected, whereas the price of luxury houses is predicted to rise by 13.5%. Tenants looking for apartments for rent must sift their way through the neighbourhoods like the Old Town, Green Community (DIP), Dubailand Residence Complex, and Downtown Dubai. Popular neighbourhoods for renting villas include The Sustainable City, DAMAC Hills (Akoya), and Reem. The?Dubai real estate?market will continue to rise in 2023, with property prices and annual rents likely to rise further due to increased demand and interest from high-net-worth individuals (HNWIs) and overseas investors. The word on the?Dubai real estate?market is that the aforementioned neighbourhoods will likely become the gold mines in the property realm.

According to?property brokers in Dubai,?property prices are predicted to rise by up to 20% on average, with the luxury market continuing to dominate with 13.5% year-on-year growth in 2023. The property market will continue to rise due to high demand from end-users and foreign and domestic investors. The Dubai property market has firmly established itself as a premier real estate destination, with 2022 proved?to be record-breaking for the industry. It is projected to conclude on a high note, paving the stage for an even better 2023?based on?Dubai real estate’s futuristic projects to be launched in 2023.?Property agents in Dubai?anticipate that famous areas like Palm Jumeirah, Downtown Dubai, Dubai Marina, JBR, and others will continue to draw buyers and investors in the coming year.

Property Gold Mines in 2023

According to data gathered by?property agents in Dubai, Palm Jumeirah has had the largest price increase of 5% in the apartment industry in recent decades. MBR City, Meydan City, and Living Legends followed. The average house price in each of these towns increased by 4.7%.

Emirates Hills had the highest growth rate for villas, at 4.6%. Other notable areas included Mudon (4.1%), Jumeriah Village Circle (3.9%), and MBR City (3.1%). The Old Town, Dubailand Residence Complex, Green Community (DIP), and Downtown Dubai had the most promising rental apartment figures of 4.9%, 4.6%, 4.5%, and 4.4%, respectively. The Sustainable City (4.9%), DAMAC Hills (Akoya) (4.8%), The Villa (4.8%), and Reem (4.7%) were the most popular choices for renting villas.

Jumeriah, JBR, Arabian Ranches, and Dubai Marina, in addition to the aforementioned places, are predicted to boost the property market in 2023. Dubai’s status as a prominent tourist destination, revised government regulations, visa flexibility, and an expat-friendly climate are all elements that have contributed to the success of the Dubai property market. Experts predict they will continue contributing to the sector’s development in 2023.

These areas stand out as particularly attractive for investment purposes due to their strategic positions, capital appreciation, strong rental yields, and general appeal. The following are the six important areas highlighted?in 2022 are:

Business Bay

In 2022, the most transacted area was?Business Bay, located just south of downtown Dubai and has a prominent canal-side location. It is one of Dubai’s fastest-growing regions, with demand for its limited properties rising in tandem and fresh supply due to be released in 2023.?Business Bay, also known as Dubai’s skyscraper area, offers high-end amenities, a fast-paced premium lifestyle in a central position, and unrivalled views of the Burj Khalifa, Downtown Dubai, and the Canal. Because of its proximity to the upmarket Downtown sector, the region has also become a popular short-term rental location as well as a key business destination. Property prices and rental rates have climbed by 15% and 34%, respectively, in the last year, making it one of the top and best places to buy?properties for sale in Dubai.

Downtown Dubai

Downtown Dubai?is considered the city’s centre and has constantly attracted high-net-worth individuals and overseas buyers. This great location, defined by icons such as the Burj Khalifa, Dubai Mall, and the Dubai Fountain, is a solid favourite for both long-term and short-term rentals in Dubai. It features luxurious high-rise towers as well as upscale nightlife. All of this has resulted in it being one of the most transacted locations in Dubai, owing to its strong rental market and rising apartment sales and rental prices (14% and 41% year on year, respectively).

As increasingly high-net-worth individuals seek to reside in?Downtown Dubai, demand will continue to surpass supply, while studios in short supply will be priced accordingly. Furthermore, a house with a view of the Burj offers larger profits on services like Airbnb. Although Downtown is more expensive, particularly near Sheikh Mohammed Bin Rashid Boulevard and the Armani Hotel, the high demand and high rental yields make this an excellent investment.

Palm Jumeirah

This man-made palm tree-shaped island is quickly becoming one of the most popular prime sites to invest in Dubai properties. It includes beachfront residences, bespoke villas, restaurants, entertainment venues, resorts, and shopping centres such as Nakheel Mall and The Pointe.?Palm Jumeirah?has been one of the best-performing luxury real estate regions in the world, with visitors and high-net-worth individuals from all over the world drawn to its unparalleled retreat-like privacy and world-class quality.

Growing demand for luxury villas, in particular, as well as strong occupancy rates of up to 88% and surging villa sale and rental prices (45% and 40% over one year, respectively), make it a potential investment in Dubai. Many billionaires have invested in opulent villas on the Palm, identifying a segment as ‘billionaire’s row’. Mukesh Ambani, an Indian industrialist, recently made headlines for his record-breaking acquisition.

Dubai Marina

This sought-after area, located directly between Jumeirah Lake Towers (JLT) and Jumeirah Beach Residence (JBR), is brimming with dining, leisure, and retail options where residents and tourists can enjoy close proximity to major attractions such as the nearby Walk at JBR, Bluewaters Island, and the Dubai Harbor.?Dubai Marina?was also one of the most transacted regions in ready-sale apartments for the year, particularly in the luxury class, and is regarded to be one of the top areas to invest in Dubai premium holiday homes, with an 87.04% occupancy rate.

Dubai Marina‘s limited forthcoming supply and rising rental prices (29% year on year) make it an appealing option for individuals seeking to make a worthwhile investment in Dubai while capitalising on the robust rental market.

Jumeirah Lake Towers (JLT)

JLT?is a business area next to Dubai Marina, built around four artificial lakes, with a mix of residential and commercial skyscrapers to suit all budgets and housing demands. JLT has seen an inflow of purchasers seeking more inexpensive mid-range apartments in Dubai because of its closeness to Dubai Marina, Downtown Dubai, and other key commercial centres, resulting in a high occupancy rate. Rental rates have increased by 27% in the last year. JLT is also located between two metro stations,?Jumeirah Lake Towers?and DAMAC?Properties, and has access to 600 retail shops, over 300 restaurants and cafés, 5 hotels, child-care facilities, outdoor activities, educational institutions, and much more.

The Greens and Views

Emaar’s The Greens and Views is renowned for its high-quality construction and great amenities. The attractive suburbs are tucked between the greenery of?Emirates Golf Club?and Barsha Heights, separated by a lake, and are located near Dubai Knowledge Park, Internet City, and Media City. As it boasts a suburban setting complete with rivers, shopping malls, foreign schools, golf courses, and five-star hotels, this tranquil, metropolitan setting is regarded as a perfect region to reside and invest in a long-term rental. The Greens is a cheaper neighbourhood than The Views, which is located nearby.

Property Boom Created By The Business Bay!

Last year, there were over 97,000 property transactions in Dubai, and analysts predict that these neighbourhoods will see the highest increase in 2023. Dubai’s Business Bay is expected to experience a property boom following a remarkably whopping $72.4 billion record year. Business Bay in Dubai dominated city real estate sales in 2022, with almost 10,300 transactions. According to the?property agents in Dubai, the premier?Dubai real estate?area, Business Bay dominated for the highest sales in Dubai in 2022, with approximately 10,300 real estate transactions valued at $4.8 billion (AED 17.6 billion) and an average price of $327,500 (AED 1.2 million). Dubai Marina, JVC, & Downtown Dubai are also projected to perform strongly in the coming year. In the previous year, they registered 7,430, 6,085, and 5,100 transactions totalling $6.6 billion (AED24.3 billion), $1.5 billion (AED5.6 billion), and $4.6 billion (AED16.8 billion), respectively.

Conclusion

The contributions of each market segment have been critical to?Dubai real estate’s brisk progress. With numerous new constructions joining the bandwagon, the property market will achieve new heights of prosperity in 2023.?If you are interested to invest anywhere in Dubai, call us today at?+971 4876 2473?or can also write us at?[email protected]?and we will be happy to make a profitable investment decision.