HOW DUBAI RANKED FIRST IN THE 2023 PRIME RESIDENTIAL WORLD CITIES INDEX
Dubai's thriving real estate market is a testament to the city's appeal as a top destination to live. Underpinned by a diversification agenda, favorable business and living legislations, and amended visas, the emirate's real estate market has been gaining momentum. According to the Prime Residential World Cities Index by Savills, Dubai's residential sector remains one of the world's most attractive real estate markets, outperforming major cities such as Paris, Madrid, Barcelona, and Mumbai. The global average prime rental values increased by 5.9 percent, but Dubai's real estate sector has recorded prime rental gains of 22.9 percent.
One factor that contributes to this growth is the uncertainty in the buying sector. With rising interest rates and the threat of inflation, more newcomers are adopting a wait-and-see approach. However, a growing number of people relocating to Dubai are becoming more selective in their investment or purchasing decisions and opting for leasing instead.
Dubai Holding Asset Management (DHAM) has observed a parallel uptick in the robust performance of its residential leasing portfolio. In 2022, its communities welcomed thousands of new residents and maintained an occupancy rate of above 95 percent across its 15 communities. Premium assets such as Bluewaters, Palm Jumeirah, City Walk, and Manazel Al Khor have high retention levels, highlighting Dubai's thriving luxury real estate market. The link to leading retail and lifestyle destinations is a huge draw for residents who want their living experience to extend beyond the residential unit.
The rental market offers convenience and reliability for those in the market for new homes. DHAM's experience shows that residents are willing to give up some of the responsibilities of homeownership and management if they can rely on an established organization like theirs to facilitate home maintenance and ensure community upkeep. Such alternatives are attractive to residents who crave simplicity and reliability, especially when new to the emirate.
