Dubai’s prime residential markets to see 7% to 10% price rise in 2023

Dubai’s prime residential markets to see 7% to 10% price rise in 2023

Villa and apartment prices in Dubai continued to show signs of stabilisation at the end of 2022 and are still poised to register a citywide increase of around 7% to 10% this year due to strong demand for prime properties, according to a report from ValuStrat.

The ValuStrat Price Index (VPI), which tracks the market performance of residential properties across the emirate, slowed to less than 1% monthly increments for the last four months of 2022 to reach 86 points. Over the last 12 months, the majority of freehold locations also witnessed little or no change in capital values.

“Dubai’s residential market [is] displaying signs of price stabilisation,” the report, released on Friday, said.

Overall, residential capital values posted a year-on-year (YoY) growth of 12.7%, while rental values were up 25% YoY.

Last November, ValuStrat reported that apartment prices in Dubai were starting to stabiliseafter months of strong growth.

Prime market

While prices may be stabilising, ValuStrat expects citywide residential property prices to register an average growth of 7% to 10% by the end of this year.

“This would mainly be driven by the prime market – villas in general. The rest of Dubai’s residential market has already reached possible price ceilings and may witness negative growth