PHOREE Real Estate is pleased to share insights into the Dubai real estate market for 2023, based on the ninth annual Real Estate Predictions report by Deloitte. This report provides a comprehensive review of the performance of Dubai’s real estate market in 2022 and forecasts changes in various sectors, including hospitality, residential, office, retail, industrial, and logistics, for the year 2023.
Key findings from the Deloitte report indicate a post-pandemic recovery of the real estate sector in Dubai, driven by pent-up demand from travelers and increased spending by residents. However, inflation remains a concern for consumers and is expected to impact sentiment, leading to price discovery and rent increases in 2023.
The occupancy rate in Dubai averaged 72% at the end of 2022, compared to the same period in 2021, while the average ADR over this period increased by 22% year-on-year to AED 674. This is higher than the majority of the regional and international markets.
The average sales prices for residential property in Dubai increased by approximately 10% between Q3 2021 and Q3 2022. Average rents also increased by approximately 21% over the same period. Office rents have recovered to pre-pandemic levels, registering an increase of 12% at the end of 2022 over the same period last year.
Consumer spending growth fueled the retail sector recovery in both online and traditional mall formats. The Economist Intelligence Unit (EIU) estimates that the total UAE retail sales volume will increase by approximately 4.2% in 2022, with sales expected to increase by 3.9% on average between 2023 to 2026.
Average warehouse rents have continued to recover as demand from logistics companies remains buoyant and freight movements at the airports surpass 2021 levels by 3% and 5% at Dubai International Airport (DXB) and Dubai World Central (DWC) respectively.
PHOREE Real Estate is committed to keeping you informed about the latest trends and developments in the real estate market. We believe that this information, sourced from Deloitte's comprehensive report, will help you make informed decisions about your real estate investments in Dubai.
(Source: Deloitte's Dubai Real Estate Predictions 2023)
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