The Dubai luxury property market is the best bet for long-term investment according to a new report produced by Core Savills.
Contrary to popular belief that the Dubai property market is built on top end developments, only a small fraction of residential transactions in 2017 were in the Dubai luxury prime sector, with property prices in the prime and ultra-prime market among the lowest of any comparable hub around the world.
David Godchaux, Core Savills CEO, said: ‘Despite the popular global assumption that the majority of Dubai’s real estate stock and transaction volumes are concentrated in the prime and luxury end of the market, this sector represents just a small portion. In fact, only 3 per cent of residential transactions in 2017 were concluded within this segment.’
Prime Dubai luxury properties were found to be approximately 40 per cent less expensive than in Singapore, and 50 per cent less than in Moscow or Paris.
Furthermore, buying and selling fees of just 8 per cent in Dubai are comparable to Shanghai and Mumbai, far less than the 32 per cent cost in Hong Kong and 20 per cent in Tokyo.
Godchaux continued: ‘The long-term investment potential in Dubai’s prime segment is reinforced by a nominal tax regime is reinforced by a nominal tax regime and notably low real estate investment costs. These costs, associated with buying, holding and selling property, can detract significantly from an investment and essentially erode the attractiveness of an asset.’
One new development very much in the Dubai luxury sector is The Grand at Dubai Creek Harbour.
The new 62-storey tower project from Dubai developer Emaar will be the ‘most premium’ tower yet and house one, two and three-bedroom apartments, four-bedroom penthouses, as well as spacious podium-level townhouses with private gardens.
Residents will be able to enjoy exclusive access to a lounge on the roof and a world-class marina able to house yachts of various sizes.
The off-plan sales launch begins tomorrow, so overseas property investors need to search down the back of their sofa to scrape together those extra pennies for a deposit.