According to the recent report of Khaleej Times Website, Dubai has been known as the cheapest city in the world in terms of prices for luxurious properties due to the fact that the average price has shown a fall by 84 % in the past 5 years.
Real estate analysts have predicted that prime property prices will experience a further decline in 2019 due to increased supply and overall falling in this field.
Given the Knight Frank’s Wealth Report, price for property has decreased 3.4 per cent from $6,966 per square metre in 2017 to $6,729 per sqm in 2018, making the properties of Dubai much more affordable than those of cities like London and Berlin and Paris (Europe), New York and Miami( USA) , Hong Kong and Singapore and Shanghai( Asia ).
Taimur Khan, research manager of Knight Frank, has put forward that the current prices for luxury properties in Dubai are only 15 percent of the average price in Hong Kong being the most costly real estate market at $32,532 per square metre.
However, the prime property prices in Dubai has reached its peak in 2014. One of sales achieved $42,796 per sqm making it the fourth highest price for property in the year 2014.
Khan has also pointed out that Dubai’s low prices does not mean a lack of prime schemes. In fact, UAE has some schemes in mind where the quality matches or sometimes, exceeds what is found in the main global cities.
Khan has also added that Knight Frank has seen a high demand for properties in this part of the market, with the difference that in Dubai, buyers are able to buy these prime projects at values that are relatively lower in comparison to other main cities, while they still are allowed to use business and lifestyle benefits of Dubai.
In the world, Hong Kong kept its position as the world’s most expensive city for property price with an average price of $45,760 per square metres followed by London, New York, Singapore, Paris, Sydney, Shanghai, Berlin, Miami and Dubai.
He has commented that according to general market conditions, prices for properties in Dubai are expected to show a further decline in 2019.
Jason Hayes, founder and CEO of LuxuryProperty.com has said that as demand increases, a fixation appears in prime residential prices.
He pointed out that steps like issuing long-term visas and Gold Card will have a positive influence on stabilization of the market in addition to promoting economic growth.
Lynnette Abad, manager of research and data is also of the opinion that the prices for prime residential segment will slightly decline with the pattern seen this year.
Therefore the prices for luxury properties in Dubai is much more affordable than other cities. Besides, buyers are allowed to benefit from some advantages that other cities like London do not offer.
*most of the information above is based on khaleej Times website.
