DUBAI, UAE, October 18, 2018 /PRNewswire/ --
The competitive price of premium residential real estate in Dubai is underpinned by the huge potential for growth by the city - which means stronger appreciation and return on investment - as Dubai continues to record sustained growth led by its firm economic fundamentals.
In particular, the price of residential real estate in Emaar's Downtown Dubai 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).
As a gateway city of the world, the Dubai International Airport recorded passenger arrivals of over 43 million in the first half of 2018 and more than 88.2 million in 2017. The world's fourth most visited destination, Dubai also hosted over 15.8 million overnight tourists last year, and 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.
Despite the increase in demand, the city offers the most competitive residential real estate rates compared to global cities, as well as significantly high return 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 investors in Dubai's property, such as in Downtown Dubai, the world's most-visited leisure and lifestyle destination with The Dubai Mall welcoming over 80 million visitors annually for four consecutive years.
* JLL Global Real Estate Health Monitor, published in February 2018