Dubai’s luxury homes to post world’s highest price rise in 2023

Dubai’s luxury homes to post world’s highest price rise in 2023

Wealthy investors may have to pay extra for a luxury house in Dubai next year as prices are set to rise further and post the highest growth globally on the back of strong buyer interest and demand-supply imbalance in the segment, according to a new report.

By the end of 2022, prices of premium apartments and villas in Dubai will be 50% higher than last year and increase further to post an average growth of 13.5% in 2023, the highest in the world, Knight Frank said in a report released on Tuesday. The city’s mainstream residential market is forecast to register price increases of 5% to 7%.

Dubai’s prime market, which includes the neighbourhoods of The Palm Jumeirah, Emirates Hills and Jumeirah Island, has already witnessed record price growth this year. The growth has been driven by the city’s safe-haven status, relatively affordable property prices, strong demand from international ultra-high-net-worth buyers and improved business sentiment.

While Dubai’s flats and villas have become pricier each year since the pandemic, the city’s property prices remain one of the most affordable in the world, with rates trailing 2014 peak levels by 21.4%, according to Knight Frank.

“Adding to the city’s appeal is its relative affordability, with prime