The coronavirus pandemic has changed the attitude of investors towards home buying and sustainability is now a priority for many property buyers in the Middle East, according to a new study.
The results of the Knight Frank Global Homebuyers Survey, released on Monday, showed that 50% of homebuyers in the region want their next villa or apartment to be energy efficient.
The study also found that proximity to green spaces (18%), good air quality (18%) and beautiful views, such as the ocean, mountain and rooftops (14%), are more important to Middle Eastern homebuyers than their global counterparts. .
“Green is definitely the new black, and buyers in the Middle East are increasingly focusing on everything ESG-related. Half of those polled cited the energy efficiency of their next home as a “very important” issue, compared to 42% of global buyers, “said Faisal Durrani, Middle East research manager at Knight Frank.
Sales of residential units in Dubai have increased since the easing of restrictions on coronaviruses last year. Many buyers are turning to villas in prime locations as private space becomes a premium during the pandemic.
In August alone, buyers spent 14.97 billion dirhams ($ 4 billion) on properties in Dubai, the highest recorded in a month since January 2017, according to Property Finder.
Buyers around the world have also bought homes since the coronavirus outbreak. According to the Knight Frank survey, around 33% of global buyers said they were more likely to buy a second residential property due to COVID-19, up from 26% last year.
Of those looking to buy a second home, 23% said the pandemic had influenced where they wanted to buy. In the Middle East, 57 percent of respondents said they would be most likely to buy a villa or house in a more rural location for their next purchase, slightly more than the rest of the world’s respondents ( 51 percent).
“It’s a fascinating insight into what homebuyers think about their next move on the real estate board. In markets like Dubai, we are already seeing demand for villas driving prices for villas to grow faster than apartments, ”Durrani noted.
The value of villas in Dubai has increased 7.8% since the first quarter of 2020, compared to a drop of -5.9% for apartments, according to Durani. He said it only shows that buyers are still considering larger, more expensive homes for their next purchase.
(Written by Cleofe Maceda; edited by Seban Scaria)
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