The prime property prices have been softening for a while now in Dubai and this has made the Emirate even more affordable than other global peers in terms of investment prospects. Prices will certainly rise a little in the future on account of the steady influx of HNIs (high-net-worth individuals) into Dubai and also due to the lower purchase costs for realty transactions. This will lead to absorption of the new real estate supply that will be launched over the next few years as per reports.
Studies have found that prime residential property is cheaper in Dubai in comparison to other key cities like London, Hong Kong, New York, Geneva, Paris, Mumbai and Tokyo. A sum of $1 million can help an investor snap up 138 square meters of prime residential property in the Emirate. For the same sum, he/she will be able to purchase 25 square meters and 28 square meters in New York and London respectively. The same amount will get 39 square meters and 41 square meters in Singapore and Geneva respectively. In Paris and Los Angeles, this will get 46 square meters and 58 square meters. For Tokyo and Mumbai, one can buy 76 square meters and 92 square meters respectively for this amount. Monaco is also the costliest city across the globe where only 16 square meters of prime property can be purchased for a million dollars.
Dubai offers greater affordability on the per square meter basis in comparison to other major global investment hubs for residential real estate. Dubai is a cosmopolitan and global city and there is high demand for prime real estate here as per experts. The demand for prime residential property often surpasses the overall supply in Dubai according to market experts. Dubai has more developable land in prime areas which gives it an advantage in terms of affordability as compared to other major global cities according to experts.
New York, Singapore, London, Monaco, Paris and Hong Kong are already fully developed and there is a shortage of land in prime areas for developing residential projects. The same trend is also observed in Mumbai. Land costs are also cheaper in Dubai as compared to counterparts like Hong Kong, New York and London. Dubai is steadily expanding geographically which will help in the growth of real estate and prices per square feet are still affordable here since sizes are bigger overall in comparison to other global cities. Demand is forecasted to remain steady for prime residential properties in Dubai as per reports. Prices will also start increasing steadily in prime areas over the next few years as per industry estimates. Location, prestige, quality of construction and the real estate brand are factors which will influence prices of prime property in Dubai in the future according to market experts.
There is huge investment potential in Dubai real estate particularly with prime projects coming up like Damac Golf Vita at Dubailand, Damac Vera Residence at Business Bay, Remraam at Dubailand and Emaar Club Villas in Dubai Hills to name a few. Dubai has a favorable taxation system and purchase costs are lower for real estate as compared to other cosmopolitan cities globally. Many experts feel that this is the best time to purchase prime real estate in Dubai.