Dubai Advances in the Capital Value Growth Rankings
Jay Krishnan, Partner
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As per the saying, necessity is the mother of invention, and so it is with the COVID-19 pandemic, which has provided Dubai with a platform to increase their attempts to usher in the economy through aggressive governmental steps and digital innovations from the startups to multinational corporations. This has resulted in boosting demand for real estate in the emirate and driving up capital prices for premium properties.
According to reports, Dubai ranks among the top 15 worldwide cities with positive capital value growth for premium residential properties in the first half of 2021. Dubai’s capital values grew by 4.2 percent as a result of the work-from-home boom and the resulting increased demand for space.
Numerous properties in many cities were totally shut down during the lockdown because of the pandemic, which increased the severity of the sluggish growth. Over the last six months, not all cities did equally well. For the first half of the year, over 70% of the locations showed positive capital value increases, with Dubai leading large cities.
Demand has been spurred by people upgrading to larger houses with outdoor facilities in the midst of an increase in remote working. Economic assistance and government efforts, such as residency permits for retirees, remote employees, the 10-year golden visa programmes along with relaxation of international travel restrictions and increasing vaccination rates are projected to improve investor confidence and demand. Adding to that, strong transaction activity resulted from the availability of good quality stock, low loan rates, and relatively inexpensive real estate prices, which drove capital values higher across premium assets.
Despite the pandemic’s continuing uncertainty, in the second quarter of 2021, Dubai’s premium residential market saw a 43.8 percent increase in sales volume, while total property prices in Dubai climbed 15% in July alone.
The pandemic phase shows that even in the face of human suffering and economic difficulties, human ingenuity mixed with innovation will never disappear. The emirate of Dubai, with its sheer hard work demonstrating its capabilities and skills, is certain that their goodies must have more stupendous ideas which are getting ready to materialize.
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