The United States and the United Arab Emirates were clear frontrunners in the rankings because both countries’ population growth and wealth variables are very favorable to housing and residential prices for the next five years. Both countries also received a strong 5-year prognosis.
Specifically for the United States, its recent market recovery and basis for economic growth in the future made it stand out. The top markets for residential real estate in the United States include Los Angeles, Miami, New York and San Francisco. San Francisco, in particular, has the strongest 5-year prognosis for market growth out of all cities examined the rankings.
The UAE came in second based the potential of residential investments, the amount of domestic wealth creation increasing demand within the country. In particular, the market in Dubai in has also seen stronger domestic demand. This regional demand has been growing and is starting to overtake the role of overseas and international investments in the market. These rankings should also be an indicator to investors that they should buy into the UAE and Dubai markets, because of their strong potential to grow in the coming years said David Godchaux, CEO of Core Savills. Godchaux pointed out that the next five years in Dubai will also be positively impacted as Expo2020 approaches.
The rankings were released in Savills’ World Residential Markets: Performance and Prospects 2015-2016 report. This report was released just before the annual real estate convention Cityscape Global in Dubai. Other countries that were ranked in the report included Singapore, the United Kingdom, Spain, Caribbean, Australia, Portugal, Italy, France, China, Hong Kong, South Africa and Switzerland.