This publication comes at a time when Dubai’s residential market indices are witnessing a drop for the 7th consecutive quarter due to a number of deflationary pressures such as a
consolidating jobs market, the strengthened dollar and an uncertainty in oil prices. The onset of Ramadan coupled with summer, as usual, is expected to drop activity levels further and extend this downward trend through the third quarter.
However, during the past year, we have seen the prime residential market be relatively resilient to these pressures when compared to the mainstream residential segment.
Aided by the current softened sales market, potential capital appreciation and higher long-term yields, Dubai’s prime residential real estate is extremely good value by global levels. Prime residential prices in Dubai are 60% below prime New York, 75% below prime London and a staggering 85% below prime Hong Kong. Additionally, with no holding charges and comparatively lower transaction costs, Dubai stacks up favourably against other competing global cities as an investment destination for UHNWI and investors.
Source : Core Savills