The emirate recorded an increase of 4.2% compared to 3.9% internationally in the first half
Savills: Dubai outperforms global cities in the growth of capital value for luxury real estate
Economic recovery and growth are boosting buyers' confidence and increasing demand for luxury real estate in the UAE.
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Savills, the world's leading real estate advisory firm, has released the latest edition of its report analyzing the growth rates of the capital values of luxury residential properties around the world. The report pointed to the stability of residential real estate markets despite the ongoing uncertainty caused by the “Covid-19” crisis, as well as the success of the 30 cities included in the Savills luxury housing index in global cities, in achieving an average growth of 3.9% over the past six months. , to record the fastest growth rates so far since December 2016, while Dubai succeeded in recording a 4.2% increase in capital value growth during the first half of 2021.
Due to changes in tax policies and global uncertainty, the average growth in capital values in various cities did not exceed 0.7% between June 2018 and December 2020. The “Covid-19” crisis has also exacerbated the repercussions of slow growth and caused the closure of a large number of businesses. Real estate is fully closed during periods of closure in many cities.
While about 70% of the locations affected by “Covid-19” have witnessed positive growth in capital values over the past six months, cities, which have historically been known to rely on international buyers in their luxury real estate markets, have recorded negative growth in these values due to restrictions on real estate. Travel procedures.
Office closures and widespread adoption of work-from-home policies have also increased the demand for space, which has played a major role in boosting capital values in locations such as Dubai, Cape Town, Moscow and Lisbon.
In the same vein, overall deal volumes increased compared to the first half of 2020, as many cities witnessed full closures.
“The resumption of international travel is likely to increase the number of people looking to buy luxury properties,” said Swabniel Pillai, Director of Middle East Research at Savills.
It is expected that the economic recovery and growth, driven by the increase in vaccination rates in the UAE, will enhance confidence levels among buyers and increase the demand for these properties.
Despite the current uncertainty due to the fallout from the (Covid-19) crisis, the luxury residential real estate sector is likely to maintain its momentum for the rest of the year.”
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