Dubai’s ‘global hub’ status fuels property market: Knight Frank

Prime home prices in Dubai saw 59% rise from 2009 to 2014

PHOTO: Prime home prices in Dubai saw a 59% rise over the five years to the end of 2014, Knight Frank said. Credit: Shutterstock

Dubai’s emergence as a “global hub” over the past few decades has helped boost its property market, according to a report by Knight Frank.

Growth in financial services, trade, logistics and tourism have all contributed to Dubai’s emergence as a global place to do business, according to the UK-based real estate agency’s inaugural The Hub Report 2015.

‘‘Unsurprisingly the impact on real estate has been positive, with higher levels of occupier demand being generated across the office, industrial and hospitality sectors, respectively,” said James Lewis, Head of Knight Frank Middle East, in a statement.

Prime home prices in Dubai saw a 59% rise over the five years to the end of 2014, Knight Frank said. That marked a better performance than London, with a 52% increase over the same period, New York (47%), Hong Kong (31%), Paris (18%), Singapore (7%) and Sydney (2%).

That was partly down to its “global hub” status, said Lewis.

“The emirate has established itself as a safe, family-friendly and low tax environment – which combined with its connectivity to other global centres – has been attracting the world’s growing population of high-net-worth individuals. Naturally then, demand for luxury residential property has been gathering momentum,” he said.

Forecasts from the IMF suggest that the UAE’s economy will outperform the likes of the UK, US, Germany, Hong Kong and Singapore over 2015-2020 – likely boosting demand for office space in Dubai, the agency noted.

“This, alongside the fact that the federation is among the easiest places to do business globally, should help to extend Dubai’s lead as a financial and business services hub in the Middle East. All else equal, this suggests that tenant demand for good quality, Grade A office space will remain healthy in the short to medium-term,” the report noted.

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