The cost per square meter in Dubai will increase by 13.5%

Over the past year, the real estate market in the UAE has successfully overcome the attachment of housing prices to the global energy crisis. Due to the active development of tourism, services, transport and financial sectors, the cost per square meter continues to grow steadily, now the average is approaching 3200 $. At the same time, the increase in prices is not only in Dubai, Abu Dhabi in 2022 showed a 30% increase in investment in the purchase of real estate.

What is happening in the residential sector now

• Stable growth in housing sales in Dubai and Abu Dhabi.
• The Dubai market was recognized as "the most transparent" in the region.
• The Central Bank of the UAE has adjusted its economic growth forecast to 6.5% in 2023. 
• Dubai has confirmed the world leadership in the number of branded residences. Large developers cooperate with many world famous brands such as Cavalli, Armani, Versace, Bvlgari and others. 
• In the next two years, about 100,000 new properties will enter the market.

The effects of Covid-19 have had a negative impact on the real estate sector and the economy as a whole, but thanks to timely government measures and financial support, Dubai is back in the lead. This was facilitated by the opening of the world's largest laboratory at Dubai International Airport. Its throughput was 100,000 PCR tests per day, and passengers received the result of the study in a couple of hours. This made it possible to comfortably continue business trips to the UAE.

Prospects for the Dubai real estate market in 2023

According to the forecasts of the consulting company Knight Frank, in 2023 Dubai will become the world leader in the rate of price growth, leaving behind Miami and Paris. Analysts predict an increase in real estate value by 20%, and a square meter - by 13.5%. There are two main reasons for this:

• With continued investors from Europe and Asia, Chinese entrepreneurs are expected to return as "zero tolerance for Covid-19" begins to ease. During the pandemic, some countries adopted this policy to prevent new infections. It is now fading away and Chinese investors are returning.
• The UAE government aims to attract the best "minds" to the country. The Entrepreneurial Nation initiative plans to create 20 promising startups worth about 1 billion $ each. The program is designed to ensure the growth of small and medium-sized businesses, as well as attract foreign direct investment. 

According to the financial publication Bloomberg, growth trends in the real estate market will continue for another two years, and according to the most ambitious estimates - 10 years. Until 2025, an average growth of 8-10% annually is expected, while in the most attractive areas it can reach 25%. And such overheated locations as Dubai Hills or Bluewaters Island will show the lowest growth.