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What a year we’ve had in the real estate market globally. After the uncertainty of Covid, the housing market has boomed across the world and people are seemingly fighting for properties everywhere you look. In Dubai, it’s no different and our market has been very strong, especially in recent months. However, we are almost beginning a new year, and lots of questions are being asked about the global economy and of course the real estate market.

Here are some of my predictions for the Dubai market in 2023:

1. There will continue to be a great demand on properties
The current population in Dubai has surpassed 3.5million and continues to grow. Dubai offers one of the best lifestyles in the world – and real estate demands will follow the trend. We don’t have an energy crisis in Dubai like there is in parts of Europe and America, so my prediction is that the market will stay strong and investors will continue to invest into Dubai property in 2023. Also, the golden visa has been introduced in Dubai. This is an attraction to lots of investors and will give them a long-term residency and, of course, a sense of performance so that they can stay here and call this incredible city their home.

2. The global situation could affect Dubai
I know this is vague, but we must monitor global events and consider that they could affect Dubai. There are 190 nationalities in Dubai and each person could be facing economic challenges in their home nations and businesses. There is no telling how this will impact Dubai, but it might have some impact. We need to keep our eye on this,.

3. We should expect the best
This is Dubai we’re talking about, the city that always wins. This isn’t arrogance, but we have to look at the data and consider history. If I look back to the crash in 2008 and the pandemic, Dubai came out of both difficulties amazingly well and quickly, so we should expect the city to ride out any problems that might be coming in 2023.

In relation to my statement above, I would like to share a case study with you. This is of a property in Downtown Dubai and in particular in a project named Burj Residences. We have a client that purchased a property there for AED 1.5m around 18-19 years ago. The construction began in 2004 and was completed in 2007. The owners enjoyed a good rental return on the property from the time of completion (2007) and the value of the property today is circa AED 3.5m.

I strongly recommend investing in prime areas/projects and holding on to the investment for a longer period of time, irrespective of the cycles or corrections and eventually you will achieve the price or profits you expect. 

Dubai is expanding, developing itself and only getting better with time. I remember 18-19 years ago when Dubai Marina and JBR used to be so far away and we'd hardly visit these areas, but today it's one of the most promising and preferred locations for investors. My advice would be to not over leverage and to be patient with your real estate investments.