New research shows that investors in the Middle East have changed their attitudes toward buying houses as a result of the Coronavirus pandemic, and sustainability is now high on the agenda of many house buyers.
Knight Frank released the results of its global buyer survey on Monday, showing that 50% of homebuyers in the region are looking for energy-efficient properties.
The study also found that green space (18%), good air quality (18%), and great views (e.g., ocean, mountains, skyline) is more important to homebuyers in the Middle East than in other parts of the world.
“Green is definitely the new black, and in the Middle East, buyers are increasingly focused on all things ESG. Half of the respondents cited the energy efficiency of their next home being a ‘very important’ issue, compared to 42 percent of global buyers,” said Faisal Durrani, head of Middle East research at Knight Frank.
Since Coronavirus restrictions loosened last year, sales of residential units have risen in Dubai. Due to the pandemic, many buyers gravitate toward villas in popular locations.
Property Finder reported that buyers spent 14.97 billion dirhams ($4 billion) on properties across Dubai in August, the most since January 2017.
Worldwide, buyers have been snapping up homes since the Coronavirus outbreak. The Knight Frank survey revealed that 33 percent of global buyers say COVID-19 has increased their likelihood of purchasing a second residential property compared to 26 percent last year.
Of those who are looking to purchase a second home, 23 percent said the pandemic has affected where they want to buy. In the Middle East, 57 percent of respondents said that they would prefer to buy a villa, or a house on a more rural property, slightly higher than respondents from everywhere else (51 percent).
“This is a fascinating insight into what home buyers are thinking for their next property chessboard move. In markets like Dubai, we’re already seeing villa demand driving faster price growth for villas than apartments,” noted Durrani.
Dubai villa values have risen by 7.8% since the first quarter of 2020, compared to apartments falling by -5.9%, according to Durani. The buyer stated that this is only indicative of buyers still looking for larger, more expensive houses.