With experts labelling Dubai a buyer’s market for 2022, and the UAE’s economy witnessing an impressive post-pandemic recovery, health and wellness are becoming increasingly important factors for home buyers when it comes to choosing the ideal community to purchase a property in.
BUYERS’ EVOLVING PRIORITIES
“The market is reflecting an evolution in buyers’ demands and priorities, particularly since the onset of the global COVID-19 pandemic, with investors demonstrating flexibility in terms of property size, as they focus instead on family-friendly amenities, wellness facilities and the overall sense of community they are buying into,” says Dennis Chan, Chestertons’ Global Head of Sales.
According to the Global New Homes team at Chestertons, the world-renowned real estate services firm with a global operation spanning 120 offices in 20 countries, more than 13,000 new homes were sold in Dubai in Q1 2022 with a large volume of property transactions, so far this year, concentrated in amenity-rich, wellness-focused communities such as Al Furjan, DAMAC Lagoons, Dubai Creek Harbour, Dubai Hills Estate, Jumeirah Village Circle, and Sobha Hartland. This, the Chestertons’ team point out, is indicative of the strength of the Dubai property market currently.
These insights point to high demand for luxury properties that come with world-class community amenities, including healthcare, education and sports facilities, parks, cycling tracks, jogging paths, and healthy-eating restaurants. For example, a recent market review report found that proximity to quality schools and access to healthcare and green spaces were at the top of home buyers’ location criteria.
HEALTH & WELLNESS TO SHAPE THE FUTURE OF REAL ESTATE
As Dubai’s reputation as a global hub for business and tourism continues to grow, so too does its ability to cater to the ever-developing demands of home buyers and property investors. Moreover, the city’s property prices remain relatively affordable compared to other major international markets.
In 2021, Dubai’s 2040 Urban Master Plan was launched, mapping out an extensive strategy for sustainable urban development in the emirate. The plan focuses on enhancing the health, happiness, wellbeing, and quality of life of citizens and residents, with key objectives including the development of vibrant, healthy and inclusive communities and doubling the amount of green and leisure areas to provide a healthy environment for residents and visitors.
HIGH DEMAND & STRONG ROI
Such a clear emphasis on the development and enhancement of wellness communities in the region is also seen in the high demand for homes in greener, amenity-rich communities across the property market in Dubai. Chestertons, for example has already recorded a 20% increase in enquiries from overseas for Dubai property in Q4 2021 and Q1 2022, as more and more buyers recognise Dubai’s ability to provide them with a fantastic work-life balance, attractive remote working opportunities, and a wide range of residency options, including golden, freelance, and real estate visas.
While Dubai is proving a popular choice for new home buyers, it is also proving to be a lucrative market for investors, with strong rental returns in vibrant suburban communities. The city’s highly competitive property prices also compare favourably to other major cities across the globe, with villas priced at an average of AED 1,259 (€320.82*) per sq. ft. and apartments at AED 1,091 (€278.04*) per sq. ft., according to Chestertons’ research. Consequently, the market offers strong rental returns, with investors gaining strong ROI across the city’s thriving communities.