Dubai’s success in handling the Covid-19 pandemic and its proactive policy measures to jump-start the economy have driven demand for property, pushing capital values for prime homes higher in the emirate.
Residential capital values grew 4.2 per cent in the first half of 2021 on availability of good quality stock, affordable prices and strong transaction activity, according to a report by global property consultancy Savills.
“The return of international travel is likely to provide an increased supply of buyers for prime properties,” said Swapnil Pillai, associate director of research at Savills Middle East.
“The economic recovery and growth, led by [an] increasing vaccination rate in the UAE, is expected to further support buyer confidence and boost demand. Though a degree of pandemic-related uncertainty remains, the prime residential sector is likely to remain strong through the rest of the year.”
Despite the ongoing uncertainty caused by the pandemic, 30 property markets in the Savills global index held up well as capital values grew on average by 3.9 per cent over the six-month period, the fastest growth rate since December 2016, according to the consultancy.
Dubai, the commercial and travel centre of the Middle East, was ranked 11th in terms of capital appreciation, with Shanghai topping the charts, followed by another Chinese city, Hangzhou. The US cities of Los Angeles and Miami occupied third and fourth spots, respectively.
Moscow, Seoul and Lisbon were also included in the top-10 global markets that have registered considerable capital appreciation in the first half, according to the report.
“With offices closed and the work-from-home concept in full bloom, the resulting increased need for space helped to push up capital values in locations including Dubai, Cape Town, Moscow and Lisbon,” Savills said.
“Alongside that, transaction volumes are going up in comparison with the first half of 2020 when a lot of cities where in complete lockdown.”
The UAE property market – which softened due to a three-year oil price slump that began in 2014, oversupply concerns and the pandemic – is bouncing back strongly.
People upgrading to larger homes with outdoor amenities have driven demand amid a rise in remote working and learning.
Economic support measures and government initiatives – such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa programme – have also helped to improve investor sentiment.
Dubai’s prime residential market recorded a 43.8 per cent surge in sales volume in the second quarter of 2021, compared with the previous quarter, according to Luxhabitat Sotheby’s International Realty report, which cited Dubai Land Department data.
Total sales during the period included 4,681 apartments and 818 villas valued at Dh16.7 billion ($4.54bn).
Overall property prices in Dubai rose 15 per cent in July alone, with average price in the emirate climbing to Dh941 per square foot ($256), from Dh818 per square foot in the same period last year, Property Monitor said.
Prices rose 1.9 per cent month-on-month in July and have climbed 11.8 per cent this year, mirroring the global trend as the world recovers from the pandemic-driven slowdown, according to its monthly market report.
UAE currency: the story behind the money in your pockets
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Past winners of the Abu Dhabi Grand Prix
2016 Lewis Hamilton (Mercedes-GP)
2015 Nico Rosberg (Mercedes-GP)
2014 Lewis Hamilton (Mercedes-GP)
2013 Sebastian Vettel (Red Bull Racing)
2012 Kimi Raikkonen (Lotus)
2011 Lewis Hamilton (McLaren)
2010 Sebastian Vettel (Red Bull Racing)
2009 Sebastian Vettel (Red Bull Racing)
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Read more from Kareem Shaheen
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
The line up
Friday: Giggs, Sho Madjozi and Masego
Saturday: Nas, Lion Bbae, Roxanne Shante and DaniLeigh
Sole DXB runs from December 6 to 8 at Dubai Design District. Weekend pass is Dh295 while a one day pass is Dh195. Tickets are available from www.soledxb.com
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
RESULT
Huddersfield Town 1 Manchester City 2
Huddersfield: Otamendi (45' 1 og), van La Parra (red card 90' 6)
Man City: Agüero (47' pen), Sterling (84')
Man of the match: Christopher Schindler (Huddersfield Town)
Calls
Directed by: Fede Alvarez
Starring: Pedro Pascal, Karen Gillian, Aaron Taylor-Johnson
4/5
Specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.5-litre%20turbo%204-cylinder%20%2F%202.0%20turbo%204-cylinder%20(S3)%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20148bhp%20%2F%20328bhp%20(S3)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20250Nm%20%2F%20420Nm%20(S3)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20December%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20TBA%0D%3C%2Fp%3E%0A
