Burj Khalifa property sees drop in price growth, says research

Dubai is the tenth most expensive city for real estate
Burj Khalifa property sees drop in price growth, says research
The Burj Khalifa, on the other hand, saw a 12% drop in growth since Q2 2010. (Getty Images)
By Lubna Hamdan
Tue 02 May 2017 12:40 PM

Dubai real estate is the tenth most expensive in the world, with the average re-sale price estimated at AED 24,419 per square metre in 2016, according to research by global property firm Savills and its UAE-based associate Core Savills.

Dubai property is seven times more affordable than Monaco, however, which ranked first on the list. Its 2016 average re-sale price reached a record high of AED165,000 per square metre, up 180 percent in the past 10 years.

While this rate of price growth is largely unseen in developed economies, Dubai displays a wide growth range across prime areas such as The Palm Jumeirah, Burj Khalifa, Emirates Hills and Dubai Marina; as well as 94 percent price growth (comparing Q1 2007 with Q1 2017) for average villa prices, the research revealed.

David Godchaux, CEO of Core Savills explains: “Although it is difficult to establish an average prime price for Dubai in the past ten years [given the large variety of products in districts with fundamentally different drivers]; we took a closer look at individual areas and noticed that some developments have outperformed top cities in the world such as The Palm.”

Price growth for the man-made island in the past 10 years amounted to 238 percent, while areas such as Emirates Hills saw an increase of 45 percent (since Q1 2012).

The Burj Khalifa, on the other hand, saw a 12% drop in growth since Q2 2010.

On the list, Hong Kong came in second place at AED156,521 per square metre while Tokyo, London, New York followed closely behind in the top five. Shanghai, Paris, Moscow and Singapore followed suit.

For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.