Why investors are attracted to waterfront properties

Waterfront properties are amongst the most liquid, even in a depressed market due to its position and scarcity – says Knight Frank

Real estate consultant, Knight Frank unpacks just why waterfront properties in the UAE and across the world are luring investors. In its latest 2019 report: Global Waterfront Report 2019, Knight Frank reveals that prices for prime waterfront properties are on average 40% higher than comparable properties inland.

The index measures the potential value uplift for prime homes on the water’s edge compared with similar properties located further inland without access to, or a view of water. Knight Frank’s data reveals that investors from all over the world searched for prime waterfront property in 2018, led by prospective buyers from the UK, US., Canada, and Australia.

“By classifying each property according to its characteristics and exact location, our data reveals that being located alongside a harbour generates the highest premium of 59.1%. However, at 58.5%, a beachfront home is not far behind with Sydney and Gold Coast registering some of the highest uplifts,” notes the report.

Results from 2018 reveal that Perth (53%), Dubai (51%) and Paris (48%) sit mid-table, with Dubai and Perth’s offering skewered more towards new-build beachfront living.

According to Taimur Khan, Knight Frank’s Research Manager in Dubai said: “Palm Jumeirah, overlooking the Arabian Gulf, is Dubai’s most desirable waterfront location. The scarcity of the product, along with the fact that waterfront properties are usually best-in-class in terms of specification and amenities has insulated values over the last decade.”

“Waterfront properties are also amongst the most liquid. Even in a depressed market, due to their position and scarcity, a front-line waterfront property will face strong demand with prospective buyers aware that their future exit strategy will also be assured,” explains the consultant in its report.