According to a new survey by Savills, Dubai ranks as the third most affordable city for purchasing prime residential property. This is when compared to other major global cities. The World Cities Prime Residential Index shows that property prices in Dubai have dropped considerably over the past five to ten years, more so than many other major global cities. This has meant that investors are willing to hold onto properties for much longer, as a way to get a better return on investment.
Dubai is an Affordable City for Residential Property Prices
Savills’ research for The World Cities Prime Residential Index highlights Dubai as the third best global hub for residential property, with returns on investment at 4.6%. This means that prime residential property prices in Dubai fell by almost 2% in the first half of the year. It’s thought that this is largely due to the oversupply in the real estate market that Dubai has been experiencing since 2014. When foreign investors became less interested in Dubai, a higher number of properties were up for grabs.
In the past five years, overall prime market prices for properties in Dubai declined by 19.8%. It’s thought that this is largely due to lower transactional costs and lower prices compared to other cities. In Dubai, investors are able to pay less for prime property investments. There were only two other cities that reported similar declines, London and Moscow. London prime property market prices declined by 18.1% and Moscow by 15.1%.