US dominance shattered by Dubai’s resurgence and its ability to attract high profile buyers
When it comes to growth in the value of prime residential capital, the leader board has traditionally been dominated by US cities. Today, Dubai has become the only non-US city to make the top five, ranking fourth in prime residential capital value growth in the first half of 2022, according to global real estate adviser Savills.
Additionally, of all other competitors, Savills says it believes Dubai is expected to be the strongest performer for the remainder of 2022. In its biannual study of residential capital values and rents in 30 major global cities, Savills notes that Dubai posted strong performance on both prime residential capital growth and rental growth valuations for the period ending June. The results are published in the Savills Prime Residential Index: World Cities.
In June 2022, property brokerage Union Square House (USH) said a quarter of home buyers in Dubai are looking for living spaces with mental health benefits.
In Dubai, basic prices rose 4.7% in the first half of the year, compared to an average growth of just 2.4% in the 30 cities covered by the Savills index. Dubai is also expected to experience strong capital growth for the remainder of 2022.
One of the factors behind the high performance is the prediction that the UAE will welcome 4,000 millionaires moving to the country in 2022, four times the pre-pandemic norm of 1,000 per year, noted the firm.
However, even an influx of this caliber has not been able to dislodge Miami from the top spot: the U.S. city was ranked first for core capital value growth in the first half of 2022, registering a half-year increase of 12 .5%. Lower taxes and a high quality of life encouraged migration from other places in the United States, fueling the city’s success. So far, North American cities have had the best performance in 2022, followed by European cities – Dubai being the only GCC location to buck the trend.
In early July, the Dubai Land Department and Emirates NBD signed an agreement to replace rent checks with online payments, while later in the month Madhav Dhar of ZāZEN Properties said the change in buyer behavior is shaping growing demand in the UAE.