Dubai in global top five for residential capital value growth


US dominance broken by the resurgence of Dubai and its ability to attract top-level buyers

When it comes to growth in prime residential capital value, the leader board has traditionally been dominated by US cities. Now, Dubai has become the only non-US city to make it to the top five, ranking fourth for prime residential capital value growth in the first half of 2022, says global real estate advisor Savills.

What’s more, of all the other contenders, Savills says that it believes Dubai is set to perform the strongest for the remainder of 2022. In its bi-annual study of prime residential capital values and rents across 30 major global cities, Savills notes Dubai has recorded strong performance on both prime residential capital growth and rental growth assessments for the period ended June. The findings are published in the Savills Prime Residential Index: World Cities.

In June 2022, real estate brokerage Union Square House (USH) stated that a quarter of homebuyers in Dubai are on the hunt for living spaces that provide mental health benefits.

In Dubai, prime prices grew by 4.7% during the first half of the year, compared to an average growth of only 2.4% across the 30 cities covered by the Savills index. Dubai is also forecast to witness strong capital growth continuing for the remainder of 2022.

One of the factors driving this high performance is the prediction that the UAE will receive 4,000 millionaires relocating to the country in 2022, four times the pre-pandemic norm of 1,000 per annum, the firm noted.

Not even an influx of this calibre has been able to dislodge Miami from the top spot yet however: the US city was ranked first for prime capital value growth in the first half of 2022, recording a half year rise of 12.5%. Lower taxes and a high quality of life encouraged migration from other US locations, fuelling the city’s success. North American cities have performed the strongest in 2022 so far, followed by cities in Europe – with Dubai the only GCC location to buck the trend.

In early July, the Dubai Land Department and Emirates NBD inked a deal to replace rent cheques with online payments, while later in the month, ZāZEN Properties’ Madhav Dhar said that shifting buyers’ behaviour is shaping rising demand in the UAE.



Leave a comment