By Sam Bridge
Colliers International says schools with annual fees of up to AED40,000 will be most in demand in Dubai
There is a high demand for mid-market schools in the UAE, with annual fees set to range between AED25-40,000, according to new research.
Colliers International's report predicts steady year-on-year growth of three percent for the next 10 years for the school-going population in Dubai.
There will be 370,000 private schools enrolment by 2030 compared to 290,000 in 2018, it said.
“It’s more mature and stable demand in the UAE for mid-market schools with a price range between AED25,000 and AED45,000 per annum. Increasing young population and maturing income levels will increase preference towards mid-market schools,” said Mansoor Ahmed, director, Colliers MENA.
According to the report, Dubai witnessed the opening of 10 new private schools with 10,000 seat capacity during 2017-18 academic year, and the number of new schools jumped to 14 in the academic year 2018-19 with 24,000 new seats.
This year, four new private schools opened for the 2019-20 academic year with around 4,000 seats.
Colliers said there are more than 210 private schools in Dubai with British, Indian, and US curriculums taking a combined market share of 81 percent.
Ahmed said: “The main demand which we see is between AED20,000 per annum and AED35-40,000. So those who are opening schools and catering to this segment they are performing well. Therefore, there is growth, and there is a demand for new and existing schools.”
According to the report, the same applies Abu Dhabi and Sharjah. Sharjah needs more schools as there is a large number of students (35,000) who come to Dubai every day.
The Colliers report also highlighted growth opportunities in regional markets such as Saudi Arabia.
In Saudi Arabia, the school-going population is expected to reach 9.5 million in 2030 compared to 7.3 million in 2018. Similarly, private student enrollments are expected to jump to 1.5 million in 2030 compared to 1.1 million in 2018.