Home sales in the UAE and around the region are more likely to get a raise this year, with about a third of multi-millionaires planning to purchase a new home in 2021, as per the new report.
In a Knight Frank report among ultra-high-net-worth individuals (UHNWI) in the Middle East, 31 percent provided that they are planning to purchase a residential property this year. Worldly, the number of potential homebuyers touched 29 percent, up from 21 percent in 2020.
“This demand will help fuel price rises of up to 7 percent in key markets over the course of the year,” Knight Frank said.
Among the selected locations, the UAE is up in the list, as well as rural and coastal areas. Properties with service to open space are mostly in-demand.
“The pandemic is super-charging demand for locations that offer a surfeit of wellness – think mountains, lakes, and coastal hot-spots,” the property consultancy firm said.
Property sales
Trading of ready homes in Dubai has raised in recent months, with purchasers snapping up properties that provide enough living space. A clear favorite area residential units in villa communities, mainly those with private gardens and entry to good quality amenities.
As per Taimur Khan, head of the search at Knight Frank Middle East, the UAE stands in the top five locations where home sales are planned.
“Despite price prices softening in almost all key markets, demand for prime residential property has remained robust throughout 2020. There are also early indications that we are seeing these markets [entering] new market cycles,” said Khan.
Prices
House costs and rents in the UAE have dropped throughout the pandemic. The fall in costs has attracted interest from first-time homebuyers.
Knight Frank provided that there may no longer be costs fall in the prime residential market this year. Costs of apartments and villas on the Plan Jumeirah, for instance, raised by 5.1 percent and 9.4 percent, respectively, in the six months to December 2020.
Over the same period, villa costs in District One have raised by 3.5 percent, while other prime markets like Downtown Dubai and Emirates Hills are providing an uptick.
“While Dubai’s prime residential market saw prices decrease by 5.9 percent in the year to November 2020, we are beginning to see signs of a recovery in price performance in some prime sub-markets,” said Khan.