The UAE has been fortunate enough to house to a wide range of healthy markets, from tourism and travel to retail. While all sectors flourished in 2022, the nation’s property markets performed exceptionally well, successfully gaining momentum after the COVID-19 pandemic.

Our country has always attracted a high level of investment in the real estate sector, from mainstream residential to luxury properties. The UAE is home to some of the world’s most iconic architecture, beaches and scenery, making it the location of choice for many who wish to call it home. This is just one of the reasons why our real estate market is set to continue on an upward trend, but what can be said about global markets?

2022 Trends

During 2022, the global real estate market grew to $3,690.55 billion representing a phenomenal compound annual growth rate (CAGR) of 9%. It was also the year that most countries saw an end to Covid-19 disruptions which had blighted the previous two years.

With this came a sense of optimism and the growth of important markets, including real estate. Technology trends were also a factor in helping the global market to develop. Innovations such as PropTech, attracted a wide range of new investors and buyers. The market demonstrated worldwide growth over the last 12 months. Although demands and trends can vary from country to country, the post-pandemic recovery appeared to be a great driver for the year’s success.

But house prices began to decline towards the end of 2022, particularly in Australia, China, and the US. In countries affected by high inflation, such as the UK, much of 2022 meant the rise and fall of prices, as a response to increased borrowing rates. However, the general trend was still one of growth.

The UAE has been an outlier in global real estate trends, with the luxury market, doing exceptionally well throughout 2022. This is partly down to the nation’s relatively affordable luxury real estate market – one of the most reasonable in terms of the square footage investors can expect per-dollar in the world. The Qatar World Cup also helped our nation’s real estate market hit a 12-year record high. With Dubai already being one of the top tourist destinations, the event spurred further investment in our property market.

DAMAC

At DAMAC, we experienced our best year on record, with sales hitting an all-time high. Cheerfully, this also coincided with the 40th anniversary of the company. We have attributed this year’s success to Dubai’s booming property market. The introduction of our luxury brand collaborations also went down a storm, with the Cavalli and de GRISOGONO projects helping us develop our portfolio.

2023 Predictions

Property prices look set to slow globally in 2023 due to the rising cost of living and waning demand. This slowing of the market comes on the back of the rising cost of mortgages, due to increased inflation. The most significant impact of this will be felt in Europe, where it is likely that declines in house prices will be seen. This is especially sharp in Denmark, where property prices will drop by an estimated 10%. The US will also see a fall in median property prices of roughly 4% during the same period. Talk of a global recession during the year to come has shaken market confidence and it is largely expected that 2023 will be a period of low growth or even falls for the sector in many regions.

However, the UAE’s property market looks set to increase its 2023 prices to match its current level of demand, which is exceptionally high in Dubai. The luxury real estate sector is likely to witness a significant call for high-end villas. Moreover, the demand for luxury waterfront properties currently outweighs the supply, so this segment is expected to remain the most buoyant. In spite of global concerns regarding recessions and inflation, the UAE is set to be resilient, especially in its luxury property sector, which is predicted to have a record year in 2023.

What’s next?

The global property market has endured strange and uncertain times over the last few years, and it looks like there is yet more to come for many regions.

Yet, despite global issues concerning inflation and the rising cost of living, the UAE’s property sector looks like it will continue to grow. Property prices will rise in the Emirates, with demand outperforming current availability. Growth may occur more slowly than the exceptional rates witnessed in 2022, but the UAE’s property market will still generate good returns for its investors. Overall, it seems as though 2023 could be challenging for many, but nothing that our nation can’t handle.

Women often face challenges that men never experience.

Amira

Tweet

Communicate with them

Women often face challenges that men never experience. Although our country is committed to the promotion of gender equality, young girls around the world will face stereotyping or discrimination in some form throughout their lives. Pretending that this will not happen or simply ignoring it when it does, can prove tempting in the pursuit of creating a ‘perfect little bubble’ for our daughters to live in, but it will ill-prepare them for the future. That’s why I find it crucial to be honest with my young daughter about the behaviour she may have encountered or incidents of unfairness that either she or I have come across. Teaching her to recognise these challenges, so she can stand her ground and follow her own path, will help her define who she becomes in adulthood. So too, will the understanding that diversity is a beautiful thing, and although we are not all the same, we are all equal. I truly believe that having an honest forum with someone that she trusts is a vital first step in developing a young woman who feels her voice is valued and that she matters.

Allowing our daughters to express their feelings

Amira

Tweet

Empower them

Female empowerment is essential, particularly in the UAE, where women make up 66% of public sector roles, one of the highest proportions in the world. To continue to raise generations of strong female role models, we must empower them at every opportunity. I find that the best starting point with this is simple. I make the effort to notice the things that my daughter does. Expressing pride when she does well in a task she has been working hard to achieve, thanking her when she shows altruism by helping another and listening to her when she expresses her emotions are all small ways that I show her she matters. Often the pressure society can place on women to be the perfect embodiment of calm and happiness can be overwhelming and is certainly unhealthy for our mental wellbeing. Allowing our daughters to express their feelings, whether anger, sadness, joy or something altogether more complicated, will help them grow into emotionally mature and confident women who can act as role models to others.