Dubai’s housing market was among the top performers in 2021, with prime residential capital values in the emirate rising by 17.4 percent during the year, faster than most other global markets in the world, according to the latest data from Savills.
The growth was the third highest globally last year, placing Dubai ahead of several real estate hotspots like New York, London, Hong Kong and Paris.
Overall, Miami and Los Angeles topped the charts for capital values, with annual growth reaching 21 percent and 20 percent, respectively.
Dubai also took the number one spot in terms of rental increases, which averaged 25 percent in December, the highest among the 30 cities tracked by Savills.
Dubai’s strong performance despite the ongoing pandemic has been attributed to high demand from buyers looking to own a slice of the city’s prime real estate.
“Buyers flocked to the city for its competitive pricing, quality of life and warm climate, in addition to the UAE’s successful handling of the COVID-19 pandemic,” Savills said.
“The emirate experienced astonishing price growth in second half of 2021, reaching levels not seen since before the financial crash in June 2008.”
However, Swapnil Pillai, Associate Director for Middle East Research at Savills, said that prime capital values in Dubai are still undervalued compared to its global peers. He said further price appreciation is expected in 2022, although at a “more sustainable level.”
Average prime capital value growth in Dubai is forecast to grow up to six percent this year, as the strong demand spills over into 2022. All the other cities, except for Hong Kong and Paris, are also set for positive growth in 2022.
Other analysts have said that Dubai’s property market could face headwinds this year compared to 2021, although demand will remain robust.
Top 20 cities with highest residential capital value growth in 2021:
Los Angeles: 19.7%
San Francisco: 7.5%
New York: 2.6%
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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