Are you thinking about investing in the residential real estate sector in the United Arab Emirates If so, the best time to start investing in the Dubai real estate market is now! Despite the significant spread of the recent pandemic and the turmoil of global conditions in the recent period, the real estate market in Dubai has been growing at a steady rate over the past two years. The encouraging thing is that this upward trend is expected to continue in 2023 and beyond, guiding investors to accelerate the entry of the Dubai real estate market, otherwise, it may be too late. Real estate Dubai investment

So, to what extent are the prices of luxury residential real estate in Dubai likely to grow in 2023

According to the global real estate consulting firm Knight Frank, prices are likely to rise by 13.5% in 2023, which is very impressive.

Let's see what are the main factors fueling this continuous growth of the market:

A strong economy. The UAE economy is strong and well-established, despite the covid-19 pandemic. Similar to 2022, the UAE economy is expected to grow more strongly next year.

Better rental returns. Compared to other developed real estate markets, Dubai offers higher rental yields. In general, investors can expect a total rental yield of between 5% and 9%.

Real estate prices per square foot are still cheaper compared to some other major global cities. Despite the recent rise in prices, owning luxury real estate in Dubai will cost you less than in many other global cities. Compared to house prices in other global luxury residential markets such as Monaco or London, Dubai is still relatively affordable.

Favorable tax conditions. The non-application of stamp duties and property taxes, which are generally applied in other international real estate markets, is another reason why Dubai continues to be the first choice for real estate investors.

Real estate investors can obtain a residence visa (subject to certain conditions). Investors who want to invest or buy a property with a price exceeding one million AED are eligible for a 3-year residence visa. Investors looking to purchase a property worth more than AED 5 million are eligible for a 5-year residence visa. But if you buy or invest in a property worth more than AED 10 million, you are eligible for a 10-year residence visa. This is one of the reasons why the number of individuals and high-net-worth buyers who show a strong interest in the real estate market in Dubai is constantly increasing.

A variety of residential real estate. The presence of a huge variety of residential real estate in different residential communities, each of which offers unique advantages, guarantees buyers a lot of options to choose from.

Other contributing factors, such as Dubai's status as a safe haven, the variety of luxury properties on offer, the strong government response during the covid-19 pandemic, the historic success of Expo Dubai 2020 as well as the post-pandemic tourism boost.

Some other trends to keep in mind

Luxury villas in Palm Jumeirah are experiencing an increase in demand

The demand for luxury villas has increased significantly in the last few years. Given this fact, it is not surprising that the prices for villas in Dubai are skyrocketing. Luxury villas on the Palm Jumeirah, in particular, have seen a strong turnout. If you check the latest buy and sell listings, the prices of villas in this area of Dubai have increased by almost 30%. Here are some of the main factors contributing to this:

Centrally located in Dubai, Palm Jumeirah is among the most sought after areas for those looking for a villa. If you want unparalleled views of the sea, Marina and mainland horizons, then Palm Jumeirah is the place for you.

Residents of the villas have direct and easy access to luxurious beaches. On Palm Jumeirah, you will be close to the beach and every day you will wake up to the Azure Beauty of the pristine Arabian Gulf.

With your stay at Palm Jumeirah, you will enjoy world-class amenities and facilities, including cafes and restaurants along with health and Spa clubs, swimming pools, gyms, water sports facilities and parks. This area is also famous for its exciting and vibrant nightlife, there are many clubs, hotels and bars everywhere. Properties in Dubai

Interest rates are likely to rise

According to experts, interest rates in the UAE are likely to rise. Despite this, real estate analysts expect the real estate market to continue its upward trend in 2023. The growth rate may not be as super as it was in 2022, when real estate prices rose by record margins, but it is likely to be a significant growth.