Emaar founder Mohammed Alabbar says he is confident Dubai’s property prices still have “great potential” to grow, and that the emirate’s prices should be studied in comparison to other global cities.
In an interview, he told Arabian Business: “Compare the price per square meter in Dubai to Shanghai, to New York, to Chicago. I challenge you to do that and not come to the conclusion that Dubai property is still a cheap deal.”
He added: “Dubai is now a global city. That’s how you need to look at the data, and then after that, you need to make your own investment decisions.”
Prices in the emirate have surged in the last 12 months. Dubai leads the 25-city forecast for 2023 with price growth expected to reach 13.5 percent. Across the cities traced the price prices were expected to rise by 2 percent on average in 2023, according to a report by Knight Frank.
Cities of Miami and Los Angeles occupy the second and third spot after the emirate, however, the forecast rate has dropped in the past six months as recessionary fears get stronger. Fixed mortgage rates in the US has exceeded 7 percent and a mansion tax is being considered in Los Angeles for homes priced above $5 million.
Residential values in emirate’s prime markets, which include the areas of Palm Jumeirah, Emirates Hills and Jumeirah Bay Island strengthen with a growth rate of 29 percent in the third quarter of 2022.
Among the most popular cities to purchase a home, the city ranks in the top three and is most popular with HNWIs based in the Chinese mainland, placing just after London and New York.
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