Dubai’s Real Estate Growth Continues Unabated in 2023

Real estate transactions in Dubai are set to grow 46% in thew second quarter of 2023 and projected to increase 4.1% compared with the same period in 2022, recent research from the UAE-based proptech firm Realiste.

According to the findings of the research, property prices have seen substantial increases, particularly in areas like Palm Jumeirah and Trade Centre First. The market’s growth is attributed to the Emirate’s strong GDP growth rate of 7.6% in 2022.

The Dubai real estate market is expected to maintain the tempo like in 2022 and will see 46% surge in the number of transactions in 2023 compared to the previous year. Dubai’s real estate sector performed exceptionally well in 2022 registering deals worth $143.75 billion, a 76.5% rise from the previous year, Dubai Media Office said in its report.

In some areas such as Al Yufrah 1, prices are expected to rise by as much as 13.1% in Q2 of 2023 as the area is strategically located with modern infrastructure, and top-class facilities.

However, in areas like Palm Jumeirah and World Trade Centre, the prices have gone up by 59% and 210% respectively while Dubai witnessed 20%-40% overall in the last one year.

Palm Jumeirah and World Trade Centre are popular among the affluent sections including foreign investors due to their luxurious properties, beachfront locations, and their proximity to business districts.

Buyers are also looking at other posh areas such as JBR, Jumeirah Golf Estate Part 4, and Wadi Al Safa 2 Part 1, where the prices are expected to increase by around 7%.

Real Estate Flourishes in Riyadh

Even in the neighbouring Saudi Arabia, the real estate continues to boom as Riyadh, the Kingdom’s capital. The local property market is expected to grow by around 30% in 2023, as the government has drawn up plans to develop eight new cities by investing $575 billion.

As part of the plans, the Saudi government is constructing 1.3 million houses and relaxed foreign ownership in all types of real estate to woo foreign investors and these measures resulted in the shooting up of property prices in the capital.

About Realiste

In Dubai, Realiste has made a significant impact since its Middle East North Africa (MENA) expansion in May 2022. The company’s AI-powered tool has been instrumental in enabling investors to navigate the city’s dynamic real estate landscape.

One of the main reasons for the investors flocking to Dubai has been the geopolitical crises due to Russian invasion of Ukraine in February 2022 and Realiste’s artificial intelligence (AI) tool provided invaluable insights into when it was the optimal time to buy or sell properties. The company’s monthly revenue in Dubai stands at $1 million, with a targeted revenue of $30 million by the end of 2023.

Realiste’s AI harnesses the power of artificial intelligence to analyse and filter vast amounts of data from various marketplaces, considering both external and internal factors. Its speed and accuracy outperform traditional brokers, enabling it to identify the most profitable options within seconds.

This AI-driven platform excels in the real estate market, where it can pinpoint overpriced and underestimated areas, provide up-to-date average prices, and offer historical price data. It also generates forecasts for future price changes, all within a matter of seconds.