Dubai real estate market forecast 2023 by PHOREE Real Estate Power by Kaggle Data

As the Statistics Department of PHOREE Real Estate, we are thrilled to present our comprehensive analysis of the dynamic real estate market in Dubai. This report aims to provide a clear understanding of the current market trends and future projections for both the average individual and high-level investors. We will delve into the intricacies of the market, using data-driven insights and cutting-edge AI technology to provide a detailed outlook for 2023.

Dubai's real estate sector, a vibrant and thriving industry, is poised for significant growth in the coming year. Our research indicates a projected growth of 39 per cent, a figure that underscores the robust health of the property market. To put this into perspective, if a property was valued at AED 1 million last year, it could potentially be worth AED 1.39 million in the coming year, a substantial increase that highlights the lucrative nature of investing in Dubai's real estate.

PHOREE Real Estate, a pioneering PropTech company based in Dubai, has been at the forefront of this growth. We are the world's first iBuyer to offer an InstantCash™ offer, a revolutionary service that allows property owners to exit from their property instantly. This service, coupled with our AI-powered tool, has transformed the way people invest in real estate in major capital cities, including Dubai, Houston, and New York.

Our AI system is designed to notify asset owners when it's the optimal time to buy or sell their properties. It's like having a personal real estate advisor, but one that uses advanced algorithms and machine learning to predict property prices for the next three months. Although still in beta, this tool is set to revolutionize the real estate sector with digital solutions.

Dubai has emerged as a safe haven for wealth elites, entrepreneurs, and tech startup founders, thanks to its stable political environment and robust economy. The city has seen the biggest inflow of private wealth in the last decade, a trend that is set to continue. As Munawar Abadullah, CEO of PHOREE Real Estate and a globally reputed investor, puts it, "Dubai will remain attractive to foreign investors because of our personal safety and the security of their assets."

Our research, based on data provided by Kaggle.com, includes an analysis of the trends in Dubai's real estate market. We've examined the areas of the city showing the most significant increase, the average cost of properties across the city, and the most high-priced or low-priced locations. This analysis, powered by our AI technology, provides forecasts for the development of Dubai's housing market in 2023.

In the first half of the year, trendy districts like Palm Jumeirah, located next to the waterfront, experienced the highest demand for property. This surge in demand, coupled with a low supply, led to a significant increase in property prices in these districts.

The rental market in Dubai also witnessed a substantial increase, with a rise of nearly 27 per cent towards the end of 2022. This increase brought the average price of rental apartments in Dubai to AED 91,795, while villas for rent are available at an average price of AED 274,740.

Looking ahead, we project the highest growth in Al Wasl and City Walk. Our data-driven projections suggest that these areas could experience up to 37.5% price growth in the coming months. Dubai Marina, a perennial favorite among the wealthy, is also expected to continue appreciating in value, with a projected growth of up to 33.5% year over year towards the 2nd and 3rd quarter of 2023.

Business Bay, another hotspot in Dubai, is predicted to remain a lucrative area for investment, with a potential capital appreciation of up to 29.75% year over year. For entry-level investors seeking short-term rental value and transaction volume, Jumeirah Village Circle (JVC) is projected to be the best area to invest. However, it's important to note that JVC is primarily a rental yield play.

The significant increase in rent, coupled with the effects of global inflation, has led to a rise in the cost of living. Consequently, many residents now prefer extending their lease instead of relocating, leading to a higher number of rental agreement renewals. This trend is expected to continue in 2023.

In conclusion, the Dubai real estate market is set to continue its upward trajectory in 2023, offering lucrative opportunities for both individual and institutional investors. The city's stable political environment, robust economy, and innovative real estate technologies make it an attractive destination for investment. As PHOREE Real Estate, we are committed to leveraging our AI-powered tools and data-driven insights to help our clients navigate this dynamic market and make informed investment decisions.

We hope this report provides a comprehensive understanding of the current state and future prospects of Dubai's real estate market. We look forward to assisting you in your real estate journey and helping you capitalize on the exciting opportunities that lie ahead.