Market Trends of UAE Luxury Furniture Industry
This section covers the major market trends shaping the UAE Luxury Furniture Market according to our research experts:
Growth of Real Estate Sector
In UAE alone, 1,089 new hotel rooms were to be constructed in 2020. It has been observed that 70% of the timber and wood products are used for construction purposes, while the remaining 30% is used in real estate, interiors, furniture, and other industrial applications. The demand for furniture will likely go up in the near future as Dubai will add new hotel rooms and service apartments to meet the growing demand of tourists following the "Expo 2020" in Dubai, which is for a period of 1 year from 2020 to 2021.
Changing Consumer Preferences Towards Luxury Goods
With more than 90% of the population residing in urban areas and the rising disposable income per capita, the preference for luxury products is high among the consumers in UAE. Abu Dhabi and Dubai account for more than 50% of the overall population in the country. The UAE is a ready-made market for luxury brands - tourism, combined with a wealthy population, is a big driver for the sector.
Dubai alone accounts for 30% of the Middle East's luxury market. One study found that UAE citizens spend around 30% of their monthly salaries on luxury goods. The UAE was recently eighth in a list of countries whose consumers are trading up from mid-market brands. Established international brands have more advantages, as foreign products account for 58% of all UAE purchases.
