Dubai realty expected to grow 4.1% in Q2

AI-enabled proptech firm sees transactions rise 46% this year

The Dubai real estate sector is projected to experience a 4.1 per cent growth rate in Q2 2023 and a surge of 46 per cent in transactions compared to 2022, according to recent research.

Property prices have seen substantial increases, particularly in areas like Palm Jumeirah and Trade Centre First. The market’s growth is supported by a strong GDP growth rate of 7.6 per cent in 2022 and favorable amenities and infrastructure, data from proptech firm Realiste show.

Research showed that certain areas, like Al Yufrah 1, are expected to see price jumps as high as 13.1 per cent in Q2 2023. This is due to the area’s strategic location, modern infrastructure, and high-quality amenities. Property prices in Dubai grew by 20-40 per cent over the last 12 months, with some areas like Palm Jumeirah and Trade Centre First growing by 59 per cent and 210 per cent , respectively. These areas are particularly popular due to their luxurious properties, beachfront locations, and proximity to business districts. Other areas, such as JBR, Jumeirah Golf Estate Part 4, and Wadi Al Safa 2 Part 1, are also expected to attract high investor traction, leading to a projected price jump between 6.8 per cent and 7.1 per cent . The Dubai real estate market is anticipated to see a 46 per cent surge in the number of transactions in 2023 compared to the previous year.

Riyadh, the capital of Saudi Arabia, is undergoing a transformation driven by the Saudi Vision 2030. The local property market is forecasted to grow by an average of 30 per cent in 2023, supported by the Saudi government’s significant investment of $575 billion in constructing eight new cities. This initiative aims to develop 1.3 million housing units and attract foreign investment. Districts such as Al Naseem and Al Hamra have experienced notable price surges, reflecting the strategic location and modern amenities available.

Additionally, the government has relaxed policies to allow foreign ownership of all types of real estate. This move is a strategic effort to attract foreign investment, which is expected to further fuel the growth of the property market. Property prices in Riyadh have seen an increase of 9 per cent in the past six months, with districts such as Al Naseem and Al Hamra experiencing surges of 56 per cent and 52 per cent , respectively. These districts are particularly attractive due to their strategic locations and the availability of modern amenities.

In Dubai, Realiste has made a significant impact since its Middle East North Africa (Mena) expansion in May 2022. The company’s AI-powered tool has been instrumental in enabling investors to navigate the city’s dynamic real estate landscape. As geopolitical crises prompted a substantial inflow of private wealth into Dubai, Realiste’s AI tool provided invaluable insights into when it was the optimal time to buy or sell properties. The company’s monthly revenue in Dubai stands at $1 million, with a targeted revenue of $30 million by the end of 2023.

Realiste’s AI harnesses the power of artificial intelligence to analyse and filter vast amounts of data from various marketplaces, taking into account both external and internal factors. Its speed and accuracy outperform traditional brokers, enabling it to identify the most profitable options within seconds. This AI-driven platform excels in the real estate market, where it can pinpoint overpriced and underestimated areas, provide up-to-date average prices, and offer historical price data. It also generates forecasts for future price changes, all within a matter of seconds.

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