Real Estate Predictions 2023 has been saved
Real Estate Predictions 2023
Dubai Market Review
Deloitte’s nineth annual Real Estate Predictions report examines the performance of Dubai’s real estate market in 2022, forecasting the changes in the hospitality, residential, office, retail, industrial and logistics sectors in 2023.
- Pent-up demand from travellers and increased spending by residents led the post-pandemic recovery of the real estate sector in Dubai.
- Inflation remains a concern for consumers and is expected to impact sentiment resulting in price discovery and rent increases leading into 2023.
- Occupancy for Dubai averaged 72% at the end of 2022, compared to the same period in 2021, while the average ADR over this period has increased by 22% year-on-year to AED 674. This is higher than the majority of the regional and international markets.
- Average sales prices for residential property in Dubai increased by approximately 10% between Q3 2021 and Q3 2022. Average rents also increased by approximately 21% over the same period.
- Office rents have recovered to pre-pandemic levels registering an increase of 12% at the end of 2022 over the same period last year.
- Consumer spending growth fueled the retail sector recovery in both online and traditional mall formats. The Economist Intelligence Unit (EIU) estimates that the total UAE retail sales volume will increase by approximately 4.2% in 2022, with sales expected to increase by 3.9% on average between 2023 to 2026.
- Average warehouse rents have continued to recover as demand from logistics companies remains buoyant and freight movements at the airports surpass 2021 levels by 3% and 5% at Dubai International Airport (DXB) and Dubai World Central (DWC) respectively.