Dubai’s property market is expected to lead the global price charts in 2023 as it continues to attract high-net-worth individuals (HNWIs), but rising interest rates and sustained headwinds are likely to soften the demand. 

Across the emirate, prices of high-end homes will jump by 6% to 7.9% this year, the highest in the world, according to real estate consultancy Savills. However, Dubai’s capital value growth, which will be similar to Singapore’s, is lower than the 12.4% increase recorded last year. 

The pace of growth in Dubai, as well as Singapore, will outrank those in Miami and Milan, where prices are likely to increase by around 4% to 5.9%, as well as Cape Town and Rome, which are both expected to record a 2% to 3.9% increase this year. 

“Both cities (Dubai and Singapore) will continue to see sustained inflows of high-net-worth individuals; however, they are not immune to higher interest rates and wider economic headwinds,” Savills said in its report. 

The real estate consultancy said Dubai’s forecast prime price growth for this year “is rather muted” compared with last year. Other markets are also expected to experience a slowdown over the next several months. 

“Overall, many of the prime residential world city markets are set for a slowdown in 2023 with an average price growth of 0.5% forecast across the 30 global cities monitored by Savills,” the report said.