Investors back to buying luxury homes in Dubai
Investors are renewing their faith in Dubai’s luxury offerings and at prices that are a bargain to what they would have to spend in Singapore or Paris. In Dubai, $1 million (Dh3.67 million) in investments would fetch 150 square metres of a super-luxury home, while in Paris the comparable figure would be 78 square metres and 90 square metres in Singapore. If someone was scouting for high-end in Monaco, $1 million would get him 22 square metres, and 23 square metres in Hong Kong, according to a new report from Core Savills.
Dubai’s high-end residences are about “40 per cent less expensive than Singapore and 50 per cent less expensive than Moscow and Paris,” states the report. “Dubai’s ultra-prime market also is comparably inexpensive compared to prominent global cities such as Shanghai and Tokyo with average prices almost 60-70 per cent lower.”
The market dynamics over the last two years could also help keep investor interest in the city’s prime properties. Currently, this category made up less than 3 per cent of all residential transactions in Dubai, and there is little chance of demand and supply suffering an imbalance any time soon. And this is quite a contrast to what is happening further down the price chain where a flood of new launches could see well over 50,000 homes being added in the next two to three years. The premium space is “likely to see continued investment inflows from global and regional investors, causing prices to stabilise – marginally contracting the gap in capital values with other global cities and witness gradual yield compression over the long term,” the report adds.
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