Demand for Dubai's luxury properties was expected to stay strong in the second half of 2023, making it the fastest-growing luxury market among the world's major cities. The growth is driven by a continued inflow of millionaires, while the market faces a shortage of high-end units.
Further Price Growth Forecast
After an 11.2% increase in capital values between January and June, industry analysts projected a further rise of up to 10% in high-end prices in the second half, which would keep Dubai's growth rate the fastest for the full year. Importantly, the luxury segment is also expected to continue driving capital values in the mid-market and affordable segments.
Strong Investor Appetite
To meet unprecedented demand, more than 15 projects were launched between June and July and almost sold out at launch, said Rizwan Sajan, founder and chairman of Danube Properties.
"It reflects a strong investor appetite, which I believe, will continue not only for the rest of the year but also continue well in 2024. Although the prices are significantly high compared to the lows of the Covid-19 pandemic period, it is still reasonable and in some cases, there is room for further growth. It is also good for property buyers and investors as the increased rental yield makes up for the increased price. So, for a Dh1 million apartment, investors can still count on Dh50,000 – Dh70,000 rent, which is between 5-7 percent annual return on investment," said Sajan.
