Dubai has become one of the top cities in terms of capital value growth.

According to a report released on Monday by a leading global real estate advisor, Dubai ranks among the 30 prominent global cities with positive capital value growth for prime residential properties during the first six months of 2021, as the resilience of the world’s residential property markets continued unabated in the first half of 2021 —- the fastest growth rate since December 2016.

The rise of work-from-home prospects, as well as the resulting increased demand for space, contributed to a 4.2% increase in capital values in Dubai. Cape Town, Moscow, and Lisbon are among the other places that have witnessed a comparable rise. Transaction volumes have also increased in contrast to the first half of 2020 when several cities were completely lockdown.

According to Savills’ World Cities Index study, Dubai’s effectiveness in dealing with the pandemic and aggressive governmental steps to jumpstart the economy played a critical role in increasing demand for premium residences.

According to the index, the capital values of premium residential properties in 30 cities increased by 3.9% over the six-month period ending in June 2021. Due to changes in tax regulations and overwhelming international uncertainties, the average rise in capital values across cities was just 0.7% from June 2018 to December 2020.

Over the last six months, not all cities did equally well. Over 70% of the locations had positive capital value increase in the first half of the year.

The cities that saw negative capital value growth have a history of relying on overseas purchasers in their primary markets, a sector that has been severely restricted by travel restrictions.

Chinese cities saw the largest capital value increase, with six-month growth rates ranging from 7.9 percent in Guangzhou to 13.7 percent in Shanghai. Price increases in China have escalated in 2021, despite efforts to calm the markets through restriction of finance and local regulatory adjustments. According to the research, “lending-fuelled purchases have been fuelling Chinese property price increases in recent years, with purchasers feeling property is likely to remain China’s safest investment.”

Swapnil Pillai, associate director of research at Savills Middle East, believes that the resumption of foreign tourism would enhance the supply of purchasers for premier homes. “Furthermore, the UAE’s economic recovery and development, aided by a growing vaccination rate, are projected to increase buyer confidence and drive demand. Despite some pandemic-related uncertainties, the prime residential sector is expected to stay robust for the rest of the year.”