RESIDENTIAL CROWNED KING
Dubai’s residential market has experienced a phenomenal turnaround over the last two-and-a-half years, with prices in the mainstream market climbing by 20%, while prime residential values have grown by an even more impressive 112% since January 2020.
23 May 2023
The drivers? The government’s impeccable record of containing the COVID-19 pandemic and far-reaching economic stimulus measures that have paved the way for one of the world’s most active luxury residential markets.
THE POPULARITY OF RESIDENTIAL TRANSCENDS WEALTH
When it comes to sector preferences, residential has been named as the top pick by our sample, with 32% overall naming it as their most preferred asset class for a property purchase in Dubai.
Offices (16%) follow in second place, with hospitality (15%) and branded residences (14%) coming in third and fourth place, respectively.
The preference for residential is particularly strong among those with a net worth of US$ 3-5 million at 84%. Those worth over US$ 10 million are also mainly interested in the residential sector (46%), with the hospitality sector (43%) and branded residences (41%) following in second and third place, respectively.
It is worth noting that the preference for branded residences is highest amongst this cohort, a theme we will revisit in our branded residential market chapter.
While the residential sector is the most common for respondents from East Asia (55%), this group is substantially more interested in retail and hospitality (37% each) compared to other world regions, with around a third of East Asian respondents also keen on a branded residential purchase (32%).
Unsurprisingly, the majority of respondents buying a property would do so purely for personal or second home use – indeed, 40% of respondents selected this as their primary reason. Meanwhile, 60% claimed the purchase would be for investment purposes, making it the second most popular driver.
