Prime Property Prices in Dubai More Affordable than the Rest of the World

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Dubai Prime Property Prices are Softening


Welcome to the Junaid Iqbal blog. Here you can find the latest news and investment trends in the property market. Junaid is a prolific businessman and an experienced property developer. He pursued his education in the UK where he kept an eye on lucrative investment opportunities. At present, he owns and manages several businesses and has successfully completed a number of successful residential developments. Read on to find out more information on the current trends on property prices in Dubai.
Junaid Iqbal Memon
The prices for a prime real estate in Dubai are softening. This has made the emirate a more economical setting for buying prime properties when compared to the rest of the world. Analysts, however, expect that the prices are going to rise. This may be due to the lower buying costs that are involved in transactions for real estate and the influx of individuals with high net worth into the emirate. It is also going to help in the absorption of new supplies that are likely to hit the Dubai market in the coming years.

Noting the latest study that Knight Frank carried out, many experts said that residential properties that are classified as prime ones in Dubai are actually more affordable when compared to the ones being sold in London, New York, Paris, Hong Kong, Tokyo, Geneva, as well as Mumbai among others.

The report also disclosed that in Dubai, a million dollars would be more than enough to buy one a prime residential property at 138 square metres. This is compared to a 25sqm property in New York, a 39sqm in Singapore, a 28sqm in London, 46sqm in Paris, 41sqm in Geneva, 92sqm in Mumbai, 76sqm in Tokyo, and 58sqm in LA. The report also identified the most expensive city in the world as Monaco where a million dollars is only going to buy one a prime residential space of 16sqm.

Apparently, Dubai is seen as more affordable in terms of how much one can get per square metre compared to what he could when buying the same type of property in other cosmopolitan cities around the world. While the emirate can be considered a mature market, compared to other cosmopolitan global cities, it is still considered a newcomer. This means that the sheer volume of prime residential property demand is considerably greater in those cities that tend to have a market that has been more established. The volume of demand can have a huge impact on the value of prime properties. In many cases, the demand and supply matrix is such that the demand can sometimes overrun the supply.

Dubai is fast becoming a significant global player in the real-estate market. This is evident in the healthy price stock demand. However, it should also be noted that as of the present, the supply and demand matrix is presently skewered towards a more abundant supply of residential units that are tagged prime ones and demand is just not rising up to the same level just yet.

In addition, the emirate also happens to have a plethora of land that is still developable. Meanwhile, other comparable cities around the world are suffering from the lack of land availability. In addition, Dubai tends to be a lot more widespread compared to other global cosmopolitan cities which usually have geographic limitations. This is why the prices per square feet tend to be lower since the overall sizes are also significantly larger compared to what other cities are offering.

Watch the video below to learn more.


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