Dubai boasts an extravagant and lavish lifestyle; which can be easily seen in the huge skyscrapers, one of the best infrastructure in world, luxurious hotels and hospitality businesses, unparalleled choices for entertainment and shopping with restaurants offering cuisine from every place of this world. Dubai is not only indeed a single city, it is the melting pot of multiple cultures from all over the world. In fact, according to a latest Knight Frank Wealth Report, Dubai is the city “that matters” in this entire region. You can find more information about property in Dubai, visit LuxuryProperty.com now.
The beauty of the city is not only limited to embellishment and luxury, but the city also possesses significant location and is situated in a beautiful surrounding. The head of Middle East and North Africa research, who is also the associate partner at Knight Frank highlights Dubai by saying that it is pleasant infrastructure, friendly regulations and modern city system that has attracted so many visitors from different countries. The people are not only interested in seeing the place, but actually in investing and spending their money over here.
According to the Knight Frank City Wealth Index of year 2017, in terms of international investment, network, wealth and prospective riches, Dubai earned 16th rank which is better than other popular and first-world cities including Houston, Geneva, Melbourne, Zurich and several others. The report also shows that the city ranks a little behind Seoul, Paris, Taipei and Frankfurt.
To further delineate the condition, Salbak says that if the investments are consistently poured in the system to improve infrastructure and logistics, the city is expected to substantially improve the ranking. He also describes that once more international investment is attracted, the city can do much better in various sectors including education, health; which will in return attract more foreign money leading to prosperity.
Another promising aspect of Dubai that makes it favourite among several other big cities is the price of luxury residences offered here. Despite being a developed place to live in, the real estate prices available in Dubai are much lower as compared to the other burgeoning economies including Hong Kong, London, Tokyo, Singapore, New York etc.
It can be elaborated using an example a quality and decent residential place of around 162m² in the city of Dubai can be bought for around $1 million; whereas it is impossible to expect the same level of living in any other big city all over the globe. For $1 million, you can only get 26m², 20m², 30m² in New York, Hong Kong and London respectively; not taking into account the expensive price of transfer of property, transportation costs and high taxes for property in these places. For more expensive property and luxury places, we can see similar difference in price.
The comparison can be even more accurately explained by comparing the highest ends of both markets; the most expensive properties. If you are interested in buying the most expensive property in Dubai, you can find it in Shaikh Zayed Road at Al Habtoor City. A penthouse in that locality costs around $54.5 million. Whereas, if you compared in with the most expensive penthouse in New York, which was sold previous year for $100 million at City’s One57 tower. That’s even not the highest price for a penthouse in New York, as another property which is being constructed at 220 Central Park South, at Manhattan condo is negotiating at $250 million. These prices are nothing compared to Dubai, and even rest of the Asia. The highest that was paid for a penthouse in Asia was $76.2 million at 39 Conduit Road tower located in Hong Kong.
The comparison is not just limited to that of between Middle East and North America, but it can be found in other cities as well. The head of residential agency at CBRE Middle East, Safina Ahmed presents an example of recently constructed luxury apartments in central district of London, Fitzrovia, which are selling at £2,200, that amounts to 10,230 in dirham per square foot; which are substantially costlier than those being sold at Palm Jumeirah for Dh2,500 for every square foot or those sold at super-prime apartments located in Dubai for Dh5,000 for every square foot.
She elaborates by saying that those spending in dirham, this seems like a fair-deal. Even the clients who are most obsessed with buying quality, they can get it at a much fair price than that of New York and London. Also, the economic costs for carrying out of real estate transactions also give Dubai an edge over other places; where these services and expensive with higher property taxes.
She also adds that luxury residences in rest of the world are on a downhill due to the associated costs and additional prices with every transaction. However, Dubai is very lenient to the buyers and do not overwhelm them with additional expenses and hefty taxes. The city offers extremely low taxes for the transfer of property and absolutely no tax on the property rented. Combine this with multi-cultural city with unparallel standard of living and it makes Dubai one of the most sought-after location for luxury property, attracting elite from all over the world.
In Dubai, there are certain areas that do better for luxury property. Some of the most prominent neighbourhoods include Downtown Dubai and Palm Jumeirah. These areas have been attracting huge investments from foreign as well as local clients due to the prices and quality offered for luxury apartments.