The Dubai real estate market will experience unprecedented price growth by the end of 2023, outperforming major cities such as Miami and Paris, according to the “Dubai Property Market Forecast for 2023” report by sustainable real estate developer Färm Properties.
The rise in prices is directly linked to the increase in sales volume, with Dubai set to see a significant 75 percent year-on-year growth in registered sales in 2022. Forecasts predict that the real estate sector will reach a volume of AED 300 billion by the end of 2023.
In 2022, a sales volume of AED 261 billion was registered in the emirate, which represents an increase of 75 percent compared to AED 149 billion in 2021. Despite the predicted 50 percent increase in the cost of prime real estate compared to 2021, luxury homes in Dubai remain more affordable than anywhere else in the world despite the significant price increase.
The developer also emphasized the importance of this growth for the country’s sustainable real estate sector.
In line with this trend, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, recently approved 78 environmental projects and initiatives, underlining the importance of sustainability.
This announcement comes shortly before the 28th Conference of the Parties (COP28), an annual meeting that addresses climate change and its impacts on various sectors. A recent survey conducted by Procore, a construction analytics software company, found that 91 percent of regional respondents believe that decarbonizing construction projects will be a major challenge in the next three years.
The report also highlights the efforts of companies in the United Arab Emirates and Saudi Arabia to introduce sustainability practices. 43 percent of companies in these countries already comply with the ISO 14001 environmental management system standard.
In addition, 45 percent of organizations in these GCC countries are aiming to comply with the standard within the next year. These practices are expected to set a lasting precedent not only in the UAE and Saudi Arabia, but also across the Middle East.
