More than half of Dubai property owners (64%) have expressed intentions about selling their properties within the next 12 months to capitalise on market circumstances.
The world’s most significant price increase for high-end properties would occur in Dubai in 2023, according to real estate firm Savills, but it was noted that the growth would be “rather muted” when compared to 2022.
Most respondents to the YouGov poll on behalf of Metropolitan Homes indicated that if they successfully sold their properties at a reasonable premium, they would buy another one in the emirate.
Around 22% of surveyed people over 45 years of age stated that they intended to retire and settle in the UAE.
During an interaction with Zawya, Alina Adamco, head of sales at Metropolitan Homes, said, “Buyers looking to invest in Dubai’s secondary market this year will benefit from the projected increase in the number of current property owners who plan to sell their units.”
This, in turn, might support a long-term growth spurt for Dubai’s real estate industry, supported by favourable market circumstances, a solid UAE economy and the city’s reputation as a safe and secure investment destination, along with recent favourable legislation improvements.
Some 81% of individuals surveyed in the YouGov poll own one or two houses, while 89% purchased a house within the past five years. Another 65% are currently residing in the home they bought, and 61% said they plan to sell their home to purchase a more expensive one.
Meanwhile, Dubai’s real estate market will remain resilient despite the global economic slowdown in 2023, predicted an expert.
While interacting with Khaleej Times, Hatem ElSafty, founder and CEO of Business Link, a business setup consultancy in Dubai, said the outlook for the real estate market was bright due to rising demand from high-net-worth individuals (HNWIs) and millionaires, especially in the luxury segment.
“As a business setup consultancy, we have seen a boost in the real estate and tourism licenses issued this year. Dubai’s strong portfolio attracts foreign investors and entrepreneurs to join the emirate’s booming property sector as they want to set up their business operations in the UAE,” Hatem ElSafty said.
Zoom Property Insights data also indicated that the luxury market would continue to grow in 2023, with a 13.5% yearly increase. The numbers suggest that the property market is showing no signs of slowing down, with a sharp rise in interest from investors and buyers alike.
The real estate market in Dubai has been a key driver of the UAE’s economic growth over the past few decades as it attracts investors worldwide with its luxurious developments and tax-free environment.
In recent times, the sector witnessed significant growth, with soaring property prices and new projects. In 2022, the market surpassed Dh 240 billion, a huge 61% growth from 2021, according to real estate agency Unique Properties.
Industry experts now believe that the market hype can be attributed to factors like UAE’s successful COVID-19 vaccination campaign, the Expo 2020, and the UAE’s newly implemented long-term visa system. These factors have boosted the country’s overall economic growth, while providing a favourable investment environment.