How much property can $1m buy you in Dubai?
Dubai - There are many Dubai communities where you can find a property at this price point.
Prices of luxury property in Dubai are much more affordable when compared to global cities.
For instance, $1 million can only fetch you 16 square metres of prime property in Monaco, 22sqm in Hong Kong, 29sqm in London, 99sqm in Mumbai and a whopping 137sqm (1,485sqft) in Dubai as of Q2 2018, according to Knight Frank.
Dubai prime properties are also way more economical than in cities such as New York, Los Angeles, Miami and Singapore. This is because the Dubai property market is still a newcomer in comparison with the globally established cities. The volume of demand for prime property is significantly higher in cities with more established markets.
"On an average price level, $1 million will buy 3,028sqft [281sqm] in Dubai. It can buy 1,474sqft or 137sqm of prime property in Dubai," says Taimur Khan, research manager at Knight Frank.
There are many Dubai communities where you can find property at this price point, both apartments and villas - Downtown, Palm Jumeirah, Emirates Hills and Emirates Living - to name a few.
"$1 million would buy you a two or even a three-bedroom luxury apartment in a sought-after building in Dubai Marina, on Palm Jumeirah or in Downtown Dubai. With that budget, one could acquire an apartment with good views, design and facilities. For those wishing to buy a villa, $1 million would go a long way, with the open market currently presenting some three and four-bedroom homes in Arabian Ranches, Jumeirah Park, Victory Heights, Meadows, Jumeirah Golf Estates or even a new Sidra or Maple at Dubai Hills Estate," observes Jason Hayes, founder and CEO of Luxury Property.
Dubai luxury property is generally purchased by a combination of both local and overseas buyers. "The composition very much depends on the type of produce which is on offer, with more second home style properties tending to attract a bit more international interest," adds Khan.
According to Knight Frank, prime property prices in Dubai fell by 0.8 per cent in the year to the second quarter of 2018. However, market observers believe the luxury property market is close to bottoming out.
"Luxury property prices seem to have bottomed out and there seems to be a revival in sentiment in high-income gated communities such as the Arabian Ranches, Emirates Hills, Palm Jumeirah as well as in Dubai Marina. There has been a slow but steady uptick in demand," notes Sameer Lakhani, managing director of Global Capital Partners.
Although there are fears of oversupply plaguing the mainstream market, this does not pose as much of a threat to the Dubai prime residential sector. "This explains the only small decrease in prices of 0.8 per cent. Additionally, this trend also varies very much from community to community. In the super prime market [the top five per cent of the market] we are witnessing sustained levels of demand," reckons Knight Frank's Khan.
Demand for Dubai's luxury homes remains strong and prices have remained stable. There has been an increase in active listings and sales of luxury properties in Dubai.
"The market is robust with clients viewing a wide variety of options and making informed decisions. Dubai is very much a maturing/matured market, with a number of different options across all price points. Buyers now have great options to choose from and we find the marketing period for properties longer than it once was. The fundamentals of Dubai as a place to invest and live remain as strong now as they ever were. They are even stronger now in the light of recent immigration and company ownership announcements," concludes Hayes.