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Property prices in Dubai lower compared to metropolis worldwide

Discussion in 'Dubai property' started by Fran, Dec 5, 2008.

  1. Fran

    Fran New Member

    Property prices in Dubai are much lower compared to the other metropolis worldwide like Hong Kong, London, Moscow, Paris and New York.

    Data stated by Colliers International in the recently released Dubai House Price Index for the third quarter of 2008 report shows that the blended average rate per ft2 for residential property in Dubai in the Q3 2008 was AED 1,919 per sq.ft (US$ 5,613 per m2).

    The average rate per ft2 for completed property increased from AED 1,784 per sq.ft (US$ 5,218 per m2) in Q2 2008 to AED 1,913 (US$ 5,596 per m2) in Q3 2008.

    During the last few months with the global economy in recession, the average rates per ft2 for properties under construction declined slightly (-0.4%) to reach AED 1,901 (US$ 5,560 per m2) in Q3 2008 compared to AED 1,908 (US$ 5581 per m2) in the previous quarter.

    Still the average property price remain two to six times lower than in the most expensive cities for luxury real estate.

    Luxury residential apartments in London are among the most expensive in the world, selling at around US$ 21,800 to U5$ 36,000 per sq m. Prime central London addresses include Belgravia, Chelsea, Mayfair, Notting Hill and Knightsbridge.

    In Moscow, most buyers can expect to pay from US$ 10,764 to US$ 20,506 per sq m. The cost of renting a 120 sq m apartment in Moscow is roughly US$ 8,000 per month, taking it into the top three most expensive for rent, alongside London and New York.

    High-end apartments in Hong Kong sell for between U5$ 10,490 and US$ 14,870 per sq m on average. Rent is equally expensive in the city, and tenants can expect to pay around US$ 5,600 per month for a 120 sq m apartment.

    Prices in Upper Manhattan range from US$ 13,270 to US$ 22,923 per sq m for the most plush apartments, compared with US$ 12,510 - US$ 20,456 in Lower Manhattan-New York Is also one of the most expensive places to rent.

    Condominium prices in Paris are approximately US$ 12,930 to US$ 18,070 per sq m. European countries following closely behind are Barcelona and Geneva, where buyers can expect to pay anywhere between US$ 6,870 I and US$ 10,400 per sq m.
     
  2. eyeC

    eyeC Senior Member

    Thank you Fran for your great post it contains good info
     
  3. zombie

    zombie New Member

    True, but one has to see population figures & non-oil GDP of the cities mentioned in comparison.
     
  4. georgihh

    georgihh New Member

    You cant compare Mercedes and BMW with Hyundai
     
  5. Djjunior

    Djjunior New Member

    Not to mention London and New York are financial capitals, where the local population actually buy& rent housing, along with 10M+ populations, a middle class, constricted supply & land mass (not endless desert), and a historical long term trend of increasing prices (with ups and downs of course).
     
  6. sasherwani2

    sasherwani2 New Member

    Fran dude have you ever been to Paris or London? Who in his right mind would compare Dubai to London, Paris, NY!?? Have you seen the sewege systems, drainage systems, road infrastructure, labor laws, public transport systems, landscaping, telecommunication systems, education systems, healthcare systems, political systems in those cities? Is it even remotely comparable to Dubai? If you believe it is then you seriously need to travel a little more. Dubai as "Georgih" pointed out is nothing more than Hyundai which you have compared to a BMW.
     
  7. eyeC

    eyeC Senior Member

    Fran also mentioned Hong Kong and Singapore which could be compared to dubai

    and hes right prices in Dubai cheaper by far and yes risk is higher in this region

    but living standard maybe better in Dubai for many who live here alot safer than

    many places ,clean, you get well paid ,easy to start business and last no tax on

    income for government with many good services by the government

    roads,safe,general services,banking,communications,cheap goods,,long list
     
  8. zombie

    zombie New Member

    Singapore & Hongkong have similar characteristics to Dubai, but they are more established property markets, they are taking a beating. Secondly never having lived in either of those places, I don't know how safe/unsafe they are, there may be more crime, but their roads ae safer to drive on, there may be direct taxes, but the known is better than the unknown(hidden charges). They have been financial centres for the region & development towards that started a long time ago.

    In Dubai the boom came because of the Freehold property market with Residency attached, alongwith the war in Iraq in which a lot of subcontracting work came this way.

    It is upto the people in this country who control its destiny where they want to take it. The property prices have not crashed, they have merely reverted to 2007 levels(You see this in every Supermarket in Dubai, prices LOCKED at 2007 levels), guess it was time the real estate market went the same way.

    Again someone please let us know non-OIL GDP of Dubai compared to SINGAPORE & Hongkong
     
  9. PropGuy

    PropGuy New Member

  10. TommyC

    TommyC New Member

    Got a fresh one? Still coming out a lot of old news that is no longer valid (this and that increasing first quarter etc.)
     
  11. eyeC

    eyeC Senior Member

    Zombie yes you right Singapore and HK they are more established property

    markets and thats why Dubai per foot prices are lower

    but if we look at it this way prices here in Dubai can only go up with time till it

    reach comparable places like HK , Singapore etc

    paying to use bridges and roads is no new concept so its a reasonable way for governments to make income

    if you try to compare between the three places HK, Singapore and Dubai i see the only advantage they have over Dubai is gambling casinos

    this region got oil with higher oil prices the region should boom if you read about a topic called peak oil (google it) u will come to know that current oil prices are not right and panic for oil will come soon and prices will rocket and therefore more money to the region
     
  12. eyeC

    eyeC Senior Member

    PropGuy thank you for the chart


    it shows a diversified economy which is not influenced by one sector also the real

    estate sector is only 10% i thought it was a much higher number
     
  13. zombie

    zombie New Member

    Hong Kong (US Dept of State)GDP (2007): USD 207.2 billion

    Singapore GDP 2007(Welcome to Statistics Singapore) - USD 161.3 billion

    Dubai GDP 2007 (UAE Interact) - USD 53 billion

    Population figures of Dubai(expats included) are similar to SIngapore.

    Let the GDP of Dubai grow to Singapore levels then we can expect the real estate prices to be similar as well. Also the slow arrival of Direct taxes(VAT), & soon others will change the way businessis done here, similar to the rest of the world.

    Till then it is pointless to compare.
     
    Last edited: Dec 9, 2008
  14. PropGuy

    PropGuy New Member

  15. PropGuy

    PropGuy New Member

    Yw. That is 2006 figure, thats the latest I've for Dubai economic sectors.
     
  16. PropGuy

    PropGuy New Member

  17. EasternCentury

    EasternCentury New Member

    Why don't compare dubai with Kuala Lumpur, the capital of Malaysia?

    Most of the completed luxury condos in the city centre are below USD5000 per sq m. and the population of the city is about 6mil.

    Malaysia is one of the oil-producing countries and rich with many other natural resources.
     
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