Tuesday, 1 March 2022

Knight Frank Sees ‘Spectacular’ #Dubai Property Bounce Continuing - Bloomberg

Knight Frank Sees ‘Spectacular’ Dubai Property Bounce Continuing - Bloomberg

Dubai’s luxury home market should keep growing after a “spectacular turnaround” in 2021 fueled by the city’s recovery from the pandemic and openness to wealthy foreigners, according to Knight Frank.

Prime prices in Dubai accelerated 44% last year, sending the Middle East business hub to the top of Knight Frank’s Prime International Residential Index 100, according to the property consultant. Still, overall prices are 30% below their 2014 peak.

“The relentless demand from the world’s wealthy has fueled a spectacular turnaround in the fortunes of Dubai’s residential market, with the decisive handling of Covid-19 by the authorities attracting the attention of global investors,” Faisal Durrani, head of Middle East research at Knight Frank, wrote in a note.

The luxury end of the market came alive in Dubai last year after it became a haven for the wealthy escaping lockdowns and for others drawn by the ease of getting vaccinated. It also provided an additional lure after a property downturn shaved more than a third off values.

Last week, a Brookfield Asset Management Inc. joint venture signed Dubai’s largest office deal since 2019 after a Middle Eastern food-delivery firm decided to establish its regional headquarters there.

“It’s unlikely the growth of 2021 will be repeated this year, but with such limited prime stock, the top end of the market still has room for growth,” Durrani wrote.

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