Even though luxury property prices in the UAE climbed by around 20 percent in 2012, it remained more affordable than some of the other top global cities.
The Wealth Report 2013, prepared by Knight Frank, a global property company, shows that the price of prime luxury property in Dubai as at least 10 times lower than Monaco, the world’s most expensive residential property market. Figures of the report suggest that, in fourth quarter of 2012, property prices in Dubai ranged between USD 520 and USD 580 per square feet. On the other hand, prime real estate cost between USD 5,350 and USD 5,920 per square feet in Monaco during the same period last year. In the list of 20 cities, Dubai was positioned on 19th rank, only ahead of Cape Town.
The report also measured the price growth of prime real estate in 80 global destinations. Prices of luxury real estate increased at a healthy rate of 20 percent in Dubai and Bali. Meanwhile, market prices in Jakarta catapulted by 38 percent, highest among the 80 global destinations that were tracked as part of the report. Property prices in Monaco rose by 2 percent, while Hong Kong and London were tied at an increase of 8.7 percent. On the other hand, prices also fell in Geneva (6 percent), Paris (4 percent), Moscow (2.3 percent) and New York (1.4 percent).
According to Liam Bailey, Global Head of Residential Research at Knight Frank, “the epitome of the global downturn between 2008 and 2009, the emirate rebounded in 2012 on the back of a resurgence in demand. This was aided by lower prices and underpinned by its location as a strategic hub, able to attract wealth from the Middle East, North Africa, the Indian subcontinent and central Asia.”