Knight Frank analysis shows how affordable Dubai is compared to the likes of London, New York and Hong Kong
Dubai is fast becoming a key hub city for property investment with prices remaining relatively affordable on a global basis, according to consultants Knight Frank.
Its analysis shows that in Dubai, $1 million will buy you 143 sq m of residential space compared to Monaco with 16 sq m, Hong Kong at 22 sq m and both London and New York at 31 sq m.
The figures come ahead of Cityscape Global, the event for real estate investment which will run at the Dubai World Trade Centre from September 25-27, and which will underline real estate opportunities created by Dubai’s increasingly mature investment environment.
Knight Frank also said that although the speed of Dubai’s real estate growth has brought challenges, it is also creating a more mature investment environment.
Taimur Khan, associate partner, Knight Frank said several factors have combined to ‘mature’ Dubai, including population growth, strategic location and quality of life and safety rankings which have spurred its international second home and investment appeal.
“Dubai has emerged as a critical global gateway city. Its geographic position means it is uniquely well placed to act as a hub for accessing Asia, the Middle East and Africa – all key future economic growth centres," he said.
“This has resulted in a plethora of nationalities choosing the emirate as a location for a second home or investment purchase,” he added, identifying the top foreign investors as being from India, the UK, Pakistan and China.
“Despite the recent slowing in market performance, if we take a longer-term view, the emirate has experienced stable growth,” noted Khan.
Khan said between 2013 and 2018, the Knight Frank Prime Global Cities Index recorded an annual average growth of 4.2 percent against Dubai’s prime market annual average growth of 2.1 percent over the same period with residential yields of between 6-7 percent.
“This relative affordability is not an indication of a lack of prime schemes. In fact, there are a number of schemes where the quality matches or in some cases, surpasses what is found in other key global cities. Knight Frank has seen strong demand for properties in this segment of the market, with the benefit that in Dubai, buyers are able to acquire these prime projects at values that are relatively lower, compared to other key global cities, whilst still benefitting from Dubai’s business and lifestyle offer,” said Khan.