_The attraction of living in waterfront properties
Even in a subdued market, waterfront properties are amongst the most liquid due to their position and scarcity. We unpack why waterfront properties in the UAE and across the world are enticing investors.
August 07, 2019
Water resources have long played a significant role in the pattern of human settlement. Today however, owning a piece of a prime waterfront is less to do with its transport or agricultural value and far more to do with the iconic views and lifestyle it affords.
Such is the demand for frontline property, whether on a river, lake, beach or harbour we thought we’d take a closer look at what price premium such properties generate and how this varies around the world. Our Knight Frank Global Waterfront Report 2019 measures the probable 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.
"The data reveals that prices for prime waterfront properties are on average 40% higher than similar properties inland."
Data reveals that investors from all over the globe searched for prime waterfront property in 2018, led by potential purchasers from the UK, US, Canada, and Australia. By categorising each property according to its features and position, 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.
The lifestyle and additional amenities that a waterfront home offers is a key motivation for many buyers. From private moorings to jetties and quays, waterfront properties offer easy access to numerous watersports along with an ever-changing panorama.
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. The 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 subdued 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.
Featured Knight Frank waterfront properties
The Royal Atlantis Dubai
Palm home on Frond I
Palm home on Frond N