Savills Global Living 2021 report, Part II

Rapid economic growth and improved global migration are propelling the Middle East's real estate sector to new heights

  
Savills Global Living 2021 report, Part II
  • The Savills global living 2021 report focuses on the impact of global migration and post-pandemic trends on world cities with a GDP of USD 50 Bn or more
  • International and domestic migration, temporarily limited by the pandemic, is forecast to return to pre-pandemic levels by 2024
  • Kuwait City, Abu Dhabi, and Dubai are the Middle East's mobility leaders, each with net migration rates projected to exceed 8% over the next five years
  • The rise of hybrid working will become a key driver in mobility trends as workers place increasing importance on their living environments, whilst needing access to their offices

UAE, Dubai : Savills, the leading global real estate advisor, recently released its Global Living 2021 Report, Part II. The study focuses on the impact of global migration, mobility trends in the context of the pandemic and ESG, with a spotlight on embodied carbon. Despite the disruption caused by COVID-19, the report predicts that global population movement will reach pre-pandemic levels by 2024, propelling the operational real estate sector to new heights. 

Steven Morgan, Chief Executive Offier at Savills Middle East said:“Demand for purpose-built, professionally managed residential space is expected to increase further as cities worldwide begin to recover from lockdowns and global net migration returns to pre-pandemic levels. The Middle East’s economy has recovered rapidly as a result of the accelerated vaccination drive, showcasing its resilience as a place of investment and residence. This has resulted in an increase in investments, thereby creating employment opportunities and stable incomes. Cities in the region such as Dubai, Abu Dhabi and Kuwait City have emerged as mobility leaders, each with net migration rates projected to exceed 8% over the next five years.”

The continued economic growth in the Middle East has allowed key markets such as the UAE, Saudi Arabia, and Kuwait to focus their efforts on improving their residential and commercial infrastructure, which has been greatly aided by government initiatives such as Dubai's Vision 2040 and Abu Dhabi's Vision 2030. This has increased investor interest in the region. Furthermore, as restrictions have been lifted and daily consumer activity has resumed, the increased availability of retail and leisure activities, combined with the revival of live events, has increased mobility within the region, accelerating the growth of the real estate sector.

Swapnil Pillai, Associate Director, Research at Savills Middle East added, “Whilst capital values increased in the Middle East in 2021, the rental market remained stable, owing primarily to travel restrictions between key source markets. However, as travel restrictions continue to ease and economic activity accelerates, creating new job opportunities, the real estate sector is likely to see an acceleration in growth.”

Climate change is another contributing factor that will continue to shape the sector in the coming years. According to the report, embodied carbon accounts for 11% of total global carbon emissions, rising to 40% when operational carbon is included. This indicates that sustainable construction methods, building standards, and redevelopment opportunities will become critical as new, more sustainable products are required to meet rising tenant demand.

-Ends-

About Savills 

Global property agents Savills provide an extensive range of residential and commercial services across the United Arab Emirates, Oman, Bahrain, Egypt, and Saudi Arabia. Established in the Middle East over 44 years ago, expertise includes everything from financial and investment advice to valuation, planning, and property management. Originally founded in the UK in 1855, Savills has a long-standing history and over 600 offices across the Americas, Europe, Asia Pacific, Africa, and the Middle East.

For further information about Savills: www.savills.com 

Media Contact:
Anisha Sharma
TOH Public Relations / savills@tohpr.com  / +9714382 8900

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.


More From Press Releases