The Gulf city is displaying a resilient spirit in its competition against established real estate giants such as London, New York, and Singapore to become a premier global real estate destination.
Dubai is emerging as a formidable competitor to well-established real estate giants like London, New York, and Singapore.
Despite the rise in real estate prices, Dubai remains a top choice for international investors seeking affordable properties with solid returns. The city’s average property price remains relatively low at an estimated $6,057 per sqm, compared to $15,105 in Singapore and $10,598 in London, as revealed by a new market research.
Although Dubai’s property prices are relatively higher than the estimated $4,750 average sqm price in New York, the projected robust 15 percent market growth for the Gulf city in 2024, in contrast to the trend of falling house prices in the Big Apple, positions it as the ideal market for both novice and seasoned international investors, according to AI-based market analysis by Realiste, a Dubai-based global proptech firm.
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House prices in New York are estimated to have fallen by 1.8 percent in a year, and concerns about the trend persist into the next year.
The strategic location, tax advantages, and investor-friendly policies of Dubai—popularly known as the ‘Jewel of the Middle East’—are other major factors aiding the emirate in positioning itself as the upcoming most lucrative global investment hub for property investments globally, as stated in the Realiste study.
The Realiste study highlights that in an era of soaring real estate prices, finding an investment destination offering affordability and lucrative opportunities can be a daunting task.
“However, Dubai is quickly propelling itself into a prominent position in the real estate industry, thanks to its relative affordability and many governmental incentives,” noted the study, which compared prevailing prices and investment prospects in major real estate powerhouses globally.
Though Dubai’s increasing unit prices concern investors, it undeniably remains a healthy and fast-evolving market that is relatively affordable.
The city continues to assert itself against established real estate giants such as London, New York, and Singapore to become a top global real estate destination, according to Realiste.
Dubai’s appeal as an investment hub, due to its strategic location, tax advantages, and investor-friendly policies, was emphasized by Alex Galt, founder and CEO of Realiste, who stated, “While London, New York, and Singapore are real estate powerhouses for a reason, we are witnessing a future real estate giant develop right before our eyes,” in an interview with Arabian Business.
“If the numbers don’t lie, as they often do not, investors can take advantage of the market’s upswing and turn a massive profit,” he added.
Galt also suggested that it would not be surprising if Dubai’s real estate market doubles in prices in the next 5 years.
“The city is a long way off from being in a bubble,” he said.
Singapore, London most expensive cities for house prices
Singapore, renowned for its stability and business-friendly environment, has been a favored investment destination in Asia. However, the city’s real estate market has experienced significant price increases, making it less affordable for investors, the study said.
Data by the Realiste study showed that Singapore has emerged as one of the most expensive real estate markets in the world, overtaking London, with the city-state’s average sqm cost coming at around a whopping $15,105.
“While the city promises a healthy growth of slightly over three percent in the next 5 years, the overwhelming entry price is great enough to deter many investors,” it said.
London, on the other hand, has long been synonymous with the global real estate market due to its historical significance, cultural richness, and stable real estate market.
“The British capital has undoubtedly established itself in a place of reverence among global markets. However, such a robust reputation comes with a pricey reality,” Realiste said.
The study, however, said property prices in London are expected to see a fall in real estate prices by 1.7 percent in the next 5 years because of hard-hitting inflation and an economy still somewhat recovering from Covid-19.
New York, regarded as the global financial center, has historically been drawing investors looking for luxury real estate and investments, though the latest data showing the city’s average sqm price is around $4,750.
“The city’s house prices have fallen by 1.8 percent year-over-year, which is drawing great concern from investors as rumors of the imminent market crash continue to propagate,” the Realiste study said.
Dubai, however, provides a multitude of options for both novice and experienced investors to expand their holdings, ensuring a profitable future, said the AI-driven Dubai proptech which operates in over 100 cities globally.
Publish Date: November 30, 2023
Source: https://www.arabianbusiness.com/industries/real-estate/revealed-dubai-top-choice-for-international-investors-seeking-affordable-real-estate-with-high-returns
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