The Al Yufrah 1 neighbourhood in Dubai is predicted to see the highest jump in real estate prices in the city in the April-June quarter of this year, with a 13.1 percent spike in housing prices, a latest market research said.
JBR, Jumeirah Golf Estate Part 4 and Wadi Al Safa 2 Part 1 are the other real estate pockets in the city which are expected to see high investor traction in Q2, leading to a projected price jump between 7.1 and 6.8 percent, the AI-driven market research by Dubai-based Protech Realiste said.
A high influx of international investors, coupled with the expected high-clipped growth in UAE’s economy and favourable government policies are cited as the major factors further pushing the growth in the city’s real estate sector in the current quarter.
The Al Yufrah neighbourhood, close to AI-Ain Road in the city, is billed as a high-end residential development with top-notch amenities. Industry insiders said the project, composed of modern townhouse complexes amidst expansive beaches and lush green spaces, is among the current investor favourites.
“Our research also shows significant growth prospects for housing projects in few other Dubai neighbourhoods, though the growth in price rise in these areas in Q2 is expected to be at a relatively lower pace,” said Alex Galtsev, Founder and CEO of Realiste.
Madinat Dubai Al Melaheyah Part 2, Bluewaters Island, Al Hebiah First Part 3, Jumeirah Village Circle, Arabian Ranches and Al Quoz Second Part 3 are the real estate projects identified by Realiste to see a price rise in the range of 5.8 percent to 4 percent in the April-June quarter of 2023.
Realiste said its market prediction is based on Dubai’s real estate market data from March 2021 to March 2022, and its analysis focused on market trends such as the areas experiencing the most substantial growth, the average cost of properties citywide, and locations with the highest and lowest prices. The research, however, predicts the overall growth rate of Dubai’s real estate sector at 4.1 percent in the second quarter 2023.
According to projections by the research, the Dubai real estate market is expected to post a 46 percent surge in the number of transactions in 2023 compared to the previous year. Galtsev said the impressive economic growth of the UAE, along with the high influx of international investors are likely to continue in the coming months as well, driving growth in the market and making it a promising destination for real estate investment globally.
In 2022, the UAE’s gross domestic product (GDP) is estimated to have expanded by 7.6 percent, marking the highest growth rate in 11 years and making it one of the fastest-growing cities in the world. The fast-paced economic growth is estimated to have led to an influx of over 300,000 global investors to Dubai, making it an attractive destination for real estate investment.
