Dubai property prices to match Hong Kong and London by 2017

Time to buy: housing prices in Dubai have a chance to reach the level of Hong Kong and London in the next two years.

This opinion is shared by many experts and even Dubai developers. In particular, by those, who bet for affordable housing, as the Head of Danube Group Rizvan Sajan.

However, the upturn in prices, which is expected to begin early next year, will start in the premium housing sector, Sajan said: "I am still surprised why property prices in Dubai are still far lower than Hong Kong or London. I am of the firm opinion that as population will increase we will see prices spiralling for prime properties. It will match those of Hong Kong and London."

Other experts show much solidarity with Danube chief. Mahmoud Saikhani, Managing Director, Shaikhani Group of Companies, believes that one of world’s highest rental yields available in Dubai will be the cornerstone of the future prosperity of the Dubai’s real estate market. “In another five years, the market will be stronger in a sense that people will be investing in Dubai than anywhere else as the emirate will be the centre of investment," he said.

And Craig Plumb, Head of Research at JLL Mena, is of the opinion that at the moment Dubai’s housing market is close to or hasalready reached its price "bottom", thus price curve has nowhere else to move expect but up.

According to British analysts from Knight Frank, at the moment 1 million Dirham UAE (about USD 272,000) in Dubai can buy you seven to nine times more living space than in Monaco and London. It is also worth mentioning that AED 1 million is a lower price limit for getting a resident’s visa in the UAE on the basis of property purchase.

For example, for the AED 1-1,5 million (depending on the area and the building readiness) IMEX Real Estate can offer you apartments ranging from 84 meters in Dubai Marina to 118-130 meters in JVC, Downtown Dubai, Motor City.

The same amount of money (about USD 272,000) can buy you only a 4,6 metered closet in Monaco, a little bigger 5,6 meter closet in Hong Kong and London, or a small 10,88 meter-sized room in Singapore and Sydney, while in Shanghai and Paris you can count only for 13 – 13,6 meters of property for that money, and in Moscow 1 million Dirhams UAE will get you a studio of about 21,4 – 27 meters in size, as well as in Mumbai.

Also, among Dubai’s obvious advantages in this case there are the absence of the old housing stock in these statistics, and the reliability of the legislation that protects off-plan property buyers.

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