Here's What You Can Buy in Dubai Property With $1 Million

Published May 28th, 2017 - 05:50 GMT
Dubai continues to be positioned attractively as a real estate haven on the global scene. (Pixabay)
Dubai continues to be positioned attractively as a real estate haven on the global scene. (Pixabay)

Despite slight yield compression witnessed over the last 6 to 12 months, Dubai’s prime residential market continues to be positioned attractively as a real estate investment on the global scene. While comparing 10 of the world’s most sought-after cities, Dubai stands out with the highest number of square metres that $1 million (Dh3.67 million) can buy in both prime and ultra-prime segments.

Why investing in Dubai property is a good idea

A million dollars will buy you 150m² in Dubai’s prime market, ranking Dubai far ahead of other global cities. Monaco offers only 22m² for the same price range, overtaking Hong Kong to become the most expensive residential real estate in the world. With a low-tax centre of commerce and all the characteristics of a leisure destination, the seafront principality is very appealing to high-net-worth individuals as a place to live, do business and play.

CityPrime (Dh/m²)Prime (m²)Ultra-prime (Dh/m²)Ultra-prime (m²)
What you can buy with $1 million
Hong Kong156,52123469,1658
New York66,85255243,79015

In Dubai, a strong dollar continues to affect the traditional buyer nationalities such as Indians, British and Pakistanis as their currencies have devalued significantly over the last year. Furthermore, domestic economic headwinds faced by the two top international nationalities in Dubai — India due to currency demonetisation and the UK due to prolonged uncertainty caused by Brexit — have cast a shadow on their overall transaction figures last year.

However, the overall sentiment remains positive, says David Godchaux, CEO of Core-Savills.

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“Despite a year-on-year contraction in the total number of real estate investors in Dubai last year, the city continues to be the most mature real estate investment destination in the region with a diverse pool of investors from over 136 countries,” says Godchaux.

In the ultra-prime sector, Hong Kong remains the most expensive city with only 8m², while Dubai again offers the largest area (83m²) for $1 million. New York is the most expensive city in terms of live-work accommodation costs per head, according to Core-Savills’ Q1 Residential Market Update (figures from December). This is illustrated in the sub-prime market with 15m² for $1 million, but its prime sector is just slightly below average with 55m², closely followed by London.

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