HSBC Holdings has said a growing demand for larger homes during the pandemic will further boost Dubai’s property market, echoing analysts at Morgan Stanley who expect the rally to last for “several years”.

“The reported sales rebound in Dubai year-to-date has been remarkable,” HSBC’s Stephen Bramley-Jackson and Alok Baid wrote.

Value of property transactions in Dubai hits four-year high for May

Total number of deals in the emirate for the year stands at almost 21,000, worth $12.8bn

Despite supply concerns and negative population growth, “the globally synched post-pandemic migration to larger homes is also reigniting Dubai’s residential property market,” they said.

HSBC raised its recommendation on Dubai’s top developer Emaar Properties to buy from hold, saying the stock offered more than 90 percent correlation to property prices.

Emaar, which reported a threefold increase in five-month sales, represents the “best means” of capturing the trend for the migration to larger homes, the analysts said.

Business activity in Dubai has been picking up alongside a rebound in tourism and a fast distribution of coronavirus vaccines. The city has remained relatively open during the pandemic, and buying real estate is also one of the fastest ways for foreigners to get a residency permit.

For properties worth at least AED10 million ($2.7 million), a record 84 changed hands in March alone, according to data from real estate consultant Property Monitor.

Buying real estate is one of the fastest ways of getting a residency permit in Dubai.

Emaar Properties posted a 65 percent jump in villas sales in the first quarter from the year-ago period.

Average quarterly residential property prices in Dubai rose for the first time in seven years in the first three months of 2021, according to data released by real estate consultants ValuStrat.

The ValuStrat Price Index (VPI) showed an average quarterly improvement of 0.8 percent, as the first three months of the year saw accelerated positive trends for the first time since 2014.

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