Dubai is set to have the best performing residential sector in the world, according to a new report.
The city was ranked fourth in the global real estate consultancy’s biennial Savills Study of prime residential capital values in 30 major global cities.
This comes after the prices of its main assets grew by 4.7% in the first half of 2022.
Dubai was the only non-US city to take the top five spots, after Miami, Los Angeles and San Francisco.
Powered by the influx of high net worth individuals and the success of the golden visa program, the city is expected to continue to attract wealthy individuals “at a level above pre-pandemic levels,” the report said.
Savills added that it also benefits from a renewed appreciation for a warmer climate, a higher quality of life, and an increased desire for more space.
“Dubai’s performance is set to be at its strongest for the rest of 2022 and the factors working in its favor include ongoing positive changes in policy, most recently additional benefits for long-term visa holders, with residents being given the opportunity to obtain quality. “Employee life is at their fingertips,” said Helen Tatham, principal residential director of Savills in Dubai.
“In addition to the increase in the number of high net worth expats choosing Dubai as their new permanent or part-time residence, there is a growing trend for current residents with a long-term vision of making Dubai their primary home.”
Dubai real estate prices have risen across all sectors over the past year as the economy recovers from the slowdown caused by the coronavirus.
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The market recorded the second strongest June on record in terms of deal volume, reaching 8,865, according to a Property Monitor report, with prices still 10% higher year-on-year.
This year, it set a record for the most expensive home in the city, with 280 million dinars ($76.24 million). Brokers said the National They expect to break the record again before the end of the year.
Savills said many global cities are seeing the impact of geopolitical uncertainty, rising inflation and higher interest rates, although this has not materially affected prices in key markets.
Meanwhile, Savills reports that prime residential rental growth outpaced capital appreciation growth in the first half of 2022, rising at an average of 3.1% compared to a 2.4% increase in capital values.
“Stock shortages and pent-up demand in the wake of urban migration with the reopening of international borders in late 2021 continued to fuel growth,” Savills said in its report.
“The revival of corporate travel, the ‘buyers’ pre-purchase experience’ and home prioritization thanks to more remote working are all driving growth in the leading rental markets in the world’s leading cities.”
Dubai ranked seventh among the cities included in the study, with an increase of 5.3% in prime rents in the first half. New York and Singapore ranked first with an increase of 8.5%, followed by London with 7.7%.
Updated: August 7, 2022, 10:25 pm