The resilience of the world’s residential property markets has continued unabated in the first half of 2021, said Savills, a global real estate advisor. Across the 30 cities in the Savills World Cities Index, residential property prices grew by an average of 3.9 per cent over the six months to June 2021, the fastest rate since December 2016. Dubai witnesses an above average 4.2 per cent increase in capital value growth over the first half of 2021, ranking at No. 11 on the Index. “The city’s success in handling the pandemic and proactive policy measures to jump start the economy played a crucial role in driving demand for prime residential property,” said the Savills report.

The value of Dubai property appreciated on the back of two key factors: the UAE’s successful handling of the pandemic and the economic recovery boosted by the stimulus packages. The availability of quality property units and affordable prices led to a strong growth in the number of transactions.

“The work-from-home boom and resulting increased need for space helped to increase capital values in Dubai, Cape Town, Moscow, and Lisbon,” the Savills report noted. “In London, following six years of falls, values remained flat in 2020 then recorded an increase of 1.1 per cent in the first six months of 2021 as the city looks good value.”

Dubai’s prime residential market, on the other hand, saw massive interest from both residents and overseas buyers

Savills World Cities Index says nearly 70 per cent of the cities experienced growth in property values over the past six months, but cities with a long history of relying on international buyers in their prime markets saw negative capital value growth as a result of travel restrictions. Dubai’s prime residential market, on the other hand, saw massive interest from both residents and overseas buyers. It recorded a 43.8 per cent surge in sales volume in the second quarter of 2021 when compared with the previous quarter, according to Luxhabitat Sotheby’s International Realty report, citing Land Department data.

Overall property prices rose 15 per cent in July alone, with the average price climbing to Dh941 per square feet ($256), from Dh818 per square feet in the same period in 2020, according to the Property Monitor Index. Experts believe property investments in the fast-developing Dubai are a very direct way to participate in and benefit from its economic growth. Property investments also act as a natural hedge against inflation.