Buying property in Dubai: The luxury factor | Hamptons International

With its special and excessive horizon, world-class foundation, multicultural condition and reputation as the area’s top hospitality, shopping and entertainment destination, Dubai truly appeals to sharp worldwide investors. What’s more, for ultra-high-net-worth individuals (UHNWIs), Dubai is the main city in the Middle East “that matters”, as per the yearly Knight Frank Wealth Report.

properties-in-dubai-marinaDubai positions 16th in the Knight Frank City Wealth Index 2017, in front of, for example, Geneva, Zurich, Houston and Melbourne and only a bit behind Paris, Frankfurt, Seoul and Taipei, in light of current riches, investment, availability and future wealth.

Despite its enormous walks as a top venture center, Dubai keeps on offering more aggressive land costs contrasted and other top-tier cities, for example, London, New York, Hong Kong, Singapore and Tokyo.

For instance, $1 million (Dh3.67 million) purchases 162m² of prime residential property in Dubai, while it would simply purchase 20m² in Hong Kong, 26m² in New York and 30m² in London, aside from the higher exchange expenses and property charges in these urban communities. A similar pattern is being found in luxury property, yet with more extensive price swings.

At the top end of the market, Dubai’s most costly penthouse in Al Habtoor City on Shaikh Zayed Road has a price tag of $54.5 million. A year ago, a penthouse in New York City’s One57 tower sold for near $100 million, just to be surpassed by another Manhattan condo under development at 220 Central Park South that accompanies a cost of $250 million. The most costly property in Asia was sold in December 2015 for $76.2 million in the 39 Conduit Road tower in Hong Kong.

Apartment rental returns in Dubai are also obviously higher than in the most settled worldwide property markets, considerably more so in the luxury section. As per figures from JLL, normal returns in Dubai achieve 7.6%, which is altogether more than normal gross yields in other leading investment areas, for example, London (3.5 for every penny), Manhattan (3 for every penny), Hong Kong (2.82 for every penny) and Singapore (2.83 for each penny).