How Furniture Market is positioned in UAE?
The furniture industry in the region is at a mature stage, although the industry was adversely hit due to a recession in the real estate sector and the decline in oil prices in the recent past. People living in UAE region were witnessed to increase their spending towards renovating homes on things such as furniture, kitchens, bathrooms and flooring; and are investing in higher quality products. Manufacture furniture products are classified in three categories of modern, contemporary and traditional furniture. All these categories include chairs, tables, beds, headboards, cabinets, desks, drawers, dressers and kitchen storage units. The UAE Furniture Industry has successfully diversified into wood, metal, stone, leather and mixed media furniture collections. Major raw materials that are required in the production of furniture products include MDF and solid wood.
Metal bars, aluminum rods and stainless steel fabrications are majorly sourced from local producers. The furniture industry makes use of various materials including bamboo, wood, metal, plastic and stone. The emirates of Dubai, Abu Dhabi and Sharjah are the main furniture producing/manufacturing hubs of the UAE region.
Dubai is the epicenter which generates the majority demand for modern style furniture. Located in Sharjah and Abu Dhabi are large number of small and medium sized companies which develop products by making use of a combination of materials. Some big furniture producers are also based in this region. Dubai on the other hand is also known for its designer and customized furniture products. The demand of furniture products made from MDF has seen a major growth. It was also observed that the demand for high end luxury furniture items has increased over the years
How has been the Growth of UAE home Furniture Market?
The sales of furniture for indoor furniture dominated the sales of home furniture in the UAE region for 2017 by capturing ~% of the market revenues which were evaluated at AED ~ million. Indoor furniture typically consists of bed, mattresses, wardrobes, sofa sets and armchairs, sofa cum beds, kitchen furniture, storage compartments and dining tables. The revenues from the sales of living room furniture dominated the sales in the UAE region.
Growth Factor: There was an increase in the sales of indoor furniture products owing to the increase in residential units in UAE. Another reason for the rise in sales of indoor furniture is owing to the influx of expats into the UAE region and the locals looking to refurbish their houses in short time periods.
Segments: This segment consists of numerous furniture products which were sold as a part of residential furniture. The products are sold for various segments of living room, bed room, dining, home office furniture, kitchen, storage furniture and other indoor furniture.
Which Segment has Contributed HIghest Share to Furniture Demand?
In 2017, the residential furniture and furnishings market of the UAE region was evaluated at AED ~ million in the year 2017. The industry witnessed a year-on-year growth of ~%. This increase can readily be attributed to the rise in number of residential spaces. Recovery of the real estate market of UAE after the 2009-2011 declines also generated and increased demand for residential furniture. The development of the UAE economy attracted many business houses to be set up here owing to the tax free laws of the region.
Trade Relations: The revenues from the sale of furniture and furnishing items also increased simultaneously in domestic and international markets. The trade relations with South Korea, Saudi Arabia, China and African countries has led to an increase in exchange of furniture products between the nations.
Replacement Time: The replacement time period of furniture in the UAE region increased, which led to decrease in demand for new items.
Which Furniture Segment is generating More Demand for Home Furniture Market in UAE?
Majority of the sales accrued to indoor residential furniture items, of which living room furniture items captured the majority shares in the market revenues. Bedroom furniture followed the dominating segment and captured ~% of the overall market revenues and consisted of beds, mattresses, wardrobes and chest of drawers. Dining room furniture captured ~% share of the market revenues and consists of dining set and sitting furniture. Kitchen furniture products captured ~% of the market revenues. The segments of home office furniture captured ~% of the market revenues from the sale of home furniture products while storage furniture captured ~% of the market revenues and the remaining ~% of market revenues was captured by other indoor furniture products such as corner tables, sitting furniture and others.
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