Dubai, UAE; October 18, 2018:The competitive price of premium residential real estate in Dubai is underpinned by the huge potential for growth by the city – which in turn means stronger appreciation and returns on investment – as Dubai continues to record sustained growth led by its firm economic fundamentals.
In particular, Downtown Dubai’s price offers the most competitive value for investors seeking short- to long-term secure real estate investment in prime locations. Even with its iconic attractions and superior infrastructure, the average price in Downtown Dubai is only US$550 (AED 2,020) per square foot.
In comparison, the average price property prices* in other key cities are significantly higher. Hong Kong leads the list at US$11,000 per square foot, followed by Tokyo (US$7,600), London (US$5,300), Paris (US$4,400), Moscow (US$4,250), New York City (US$4,100), and Shanghai (US$2,125), among others.
As a gateway city of the world, the Dubai International Airport welcomed over 43 million visitors in the first half of 2018 and more than 88.2 million in 2017 – making it the world’s number one airport for international passengers. The world’s fourth most visited destination, Dubai, with a population of over 3 million, also hosted over 15.8 million overnight tourists in 2017, a growth of over 6.2% compared to 2016, and over 10.44 million as of end-August this year.
Investor appetite for premium real estate in Dubai’s central locations such as Downtown Dubai, Dubai Marina, Dubai Creek Harbour, Dubai Hills Estate, and Emaar Beachfront, has spiked in recent months, led by strong demand from high net worth international investors who are seeking strong returns in a safe investment environment.
Despite the increase in demand, the city offers the most competitive residential real estate rates compared to global cities, as well as significantly high returns on investment. For instance, compared to the prime yield of 3.6% in New York*, Dubai promises residential real estate yield of 7.5% – making it one of the most secure cities for value gains through property investment. The prime yields in other key cities globally are: Beijing (6.2%), Boston (4.1%), Brussels (4.5%), Chicago (5.3%), Frankfurt (3.3%), Hong Kong (2.7%), London (3.5%), and Los Angeles (4.3%), and Madrid (3.8%).
Competitive prices and strong yields matched by world-class design, astonishing lifestyle amenities and a central location are key drivers for regional and international investors in Dubai’s property sector – particularly integrated lifestyle developments.
Downtown Dubai is already a vibrant destination and a must-visit in the itinerary of every visitor with icons such as Burj Khalifa, The Dubai Mall, The Dubai Fountain and Dubai Opera. Downtown Dubai has the distinguished track-record of being the world’s most-visited leisure and lifestyle destination with The Dubai Mall welcoming over 80 million visitors annually in the past four years.