Continued demand and interest from high-net-worth individuals (HNWIs) and foreign investors will keep property rents in Dubai high in 2023, according to a new report.

Property prices in the emirate are expected to increase by as much as 20% on average, while the luxury segment will continue to dominate, with 13.5% year-on-year growth in 2023, data from Zoom Property Insights showed.

“The Dubai property market has cemented its position as a leading real estate destination, with 2022 proving to be a remarkable year (so far) for the sector. It is expected to end on a strong note, paving the way for an even stronger 2023,” Ata Shobeiry, CEO of Zoom Property, said.

He said popular communities, such as Palm Jumeirah, Downtown Dubai, Dubai Marina and Jumeirah Beach Residence (JBR), will continue to attract buyers and investors in the next year as well.

In a recent report, property consultancy Knight Frank said that price growth for prime Dubai real estate in 2023 is likely to moderate to 13.5%, which is “still the highest growth rate for prime markets globally”.

Prime property values are being driven by Dubai’s safe-haven status, an exceptionally diverse range of international ultra-high-net-worth individuals in search of luxury second homes, combined with the government’s world-leading response to the pandemic, which has spurred business investor confidence, the consultancy said.

In 2022, the emirate’s property market broke all records with registered sales of 88,028 transactions as of November 2022, up by 46% from 2021 and exceeding the market peak in 2013 by 38%, according to the recent Zeitgeist 2022 Report from Property Finder.