Last Updated on: 7th July 2023, 12:13 pm
The Real Estate Market in Dubai Will Slow Down in 2023
High Net Worth Individuals (HNWI) continue to invest heavily in the Dubai real estate market. As a result, it will continue to dominate all global price charts in 2023. However, rising interest rates will weaken local demand and slow this year’s price increases.
It is estimated that luxury residence prices in the UAE will rise between 6% and 7.9%, the highest in the world, according to property firm Savills.
Despite the slowdown, Dubai will overtake Miami and Milan, which will post gains of around 4-5.9%. It will also overtake Cape Town and Rome, which are expected to post 2-3.9% growth.
Savills said price growth in Dubai would flatten somewhat compared to last year. Interest rates have been rising since 2022, with the United Arab Emirates completing a 25 basis point hike last month.
Last year, Dubai’s house price growth was the second highest in the world at 12.4%, while Miami topped the list with 25.4% growth.
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