Dubai luxury property market to maintain fastest growth rate in H2..

Demand for Dubai’s luxury properties will remain strong in the second half of 2023 and will be the fastest growing market among all the major cities around the world on the back of the continued inflow of millionaires, with the market facing a supply shortage of high-end units.

Following an 11.2 per cent increase in capital value during the January-June period, industry analysts project another up to 10 per cent increase in prices of high-end units during the second half, maintaining the fastest growth rate for the whole year.

Importantly, the luxury segment will continue to drive the capital value of the mid and affordable units as well.

In order to cash on unprecedented demand, Rizwan Sajan, founder and chairman of Danube Properties, said more than 15 projects were launched and nearly sold out at launch between June and July.

“It reflects a strong investor appetite, which I believe, will continue not only for the rest of the year but also continue well in 2024. Although the prices are significantly high compared to the lows of the Covid-19 pandemic period, it is still reasonable and in some cases, there is room for further growth. It is also good for property buyers and investors as the increased rental yield makes up for the increased price. So, for a Dh1 million apartment, investors can still count on Dh50,000 – Dh70,000 rent, which is between 5-7 percent annual return on investment,” said Sajan.