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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