Middle East residential investors are more keen to purchase holiday homes than their global counterparts, according to the 2021 Knight Frank Global Buyer Survey.
A total of 14% of surveyed Middle East residential investors noted that they would like to purchase a holiday home, compared to a global average of just 6%.
Further, the survey showed that 23% of respondents in the Middle would be motivated to make their next purchase in order to upgrade their primary residence. However, this is lower than the global average of 35%.
Globally, 33% of buyers are more likely to purchase a second home due to the global pandemic, a growth of 7% from last year. Of these, 23% said that the pandemic had an impact on where they decided to purchase a second home, whereas 22% noted that their purchasing plans were delayed because of the pandemic.
Interestingly, the report found that 95% of Middle East respondents lived in cities, as compared to a global 68%.
“Unlike mature cities across the world, which often have very defined cores and sprawling suburbs, cities in the Gulf are still in expansion mode, which means there are multiple focus communities, where the majority of people live,” Faisal Durrani, Partner – Head of Middle East Research at Knight Frank, said.
The 2021 Knight Frank Global Buyer Survey covers 900 Knight Frank clients across 49 global markets, including the Middle East.
ESG IS POPULAR AMONGST MIDDLE EAST RESIDENTIAL INVESTORS
The report noted that certain ESG factors were more important to Middle East residential investors than elsewhere in the world.
Energy efficiency was high on the priority list, with 50% of the survey’s respondents noting energy efficiency of their next home was a ‘very important’ consideration. This was slightly north of the global average, which stood at 42%.
Further, proximity to green space and good air quality was more important to Middle East residential investors than global buyers, topping the list of location criteria. Other criteria that were also important included proximity to good schools and access to healthcare.
“This should send a very strong signal to developers and planners around the region about how important ‘being greener’ will be in driving the success of new projects,” Durrani said. “Furthermore, the November Climate Change Conference (COP 26) in Glasgow will help to cement 2021 as the Year of the Green Re-awakening for real estate and the green drumbeat is only going to grow louder as investors and buyers zero in on this all-important issue.”
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