According to a recent report, the real estate market in Dubai showed good results and ranked fourth in the world in terms of the growth in the cost of luxury housing in the first half of the year, as prices increased by 4.7% compared to an average of 2.4% in 30 cities around the world. This was largely due to the high activity of wealthy individuals and investors as a result of the successful strategy to combat COVID-19 and visa reforms.
According to the Savills Prime Residential Index: World Cities, Miami, Los Angeles, San Francisco and New York were the four other U.S. cities ranked first in the ranking, and Dubai was the only foreign city in TOP-5.
An early study by Savills also ranked Dubai as the third best place in the world for foreigners, thanks to its extensive visa program, favorable climate, excellent transport accessibility and an established luxury housing market.
The top ten cities included Seoul, Lisbon, Cape Town, Berlin and Milan. According to the study, geopolitical uncertainty, rising inflation and interest rates have an impact on most cities in the world, although they have not yet had a significant impact on pricing in major markets.
The index also showed that the growth of rents in Dubai for the first half of the year exceeded 5% compared to the global average of 3.1%. The Emirate ranked seventh in the Savills World Cities Index in terms of rent changes with a 5.3% increase in rents.
Capital growth will continue
Savills also stated that due to the influx of wealthy people and the success of the Golden Visa program, it is expected that Dubai will maintain steady capital growth until the end of 2022. The Emirate is also benefiting from the growing desire of people for more space, better quality of life and a warmer climate.
Dubai is expected to perform best by the end of 2022 due to a number of factors, including ongoing favorable policy changes, the most recent of which have added benefits for those with long-term visas.
