Dubai rated as the most "affordable" world city to buy a home in

A new report from Savills explains why buying property in Dubai now is the best idea.

According to a comprehensive Savills World Research, Dubai is rated as the most "affordable" metropolis to purchase a home in compared with other major world centers of social and business life.

The research was based on a comparison of real estate prices in such dynamic and multinational centers of modern life as London, New York, Hong Kong, Paris, Mumbai, Singapore and Sydney. In all these cities the average property sales price is much higher than in Dubai, according to Savills report.

However, rentals in Dubai on average are much higher than in other cities mentioned above resulting in one of the highest real estate investments yields here — an average of 9%. And yields in such areas as Palm Jumeirah, Discovery Gardens and Dubai Marina often exceed even whooping 11 percent. The Head of Core, the UAE associate of Savills, David Godchaux thinks the reason for the increase in return on Dubai real estate investments lies in more rapid prices decline in the segment of real estate sales rather than in the rental segment, which is likely to still take place throughout 2016.

A number of developers targeting customers with salaries from AED 15,000 to 25,000 per month have already launched or are about to soon present tempting offers of affordable housing in Dubai. Besides, many local banks offer favorable terms on mortgages, with low and, more importantly, fixed interest rates, ensuring the monthly installments continue to remain the same over a number of years, despite all world currencies’ fluctuations. That’s why, with this in mind, and taking into account the average return on investments in Dubai’s real estate, Savills’ experts called the current period the most favorable time to purchase an apartment or a villa in the emirate.

“We are now witnessing a growing pool forming of investors and renters who are anticipating a balance in price and increase by the end of 2016, which is a strong stabilising factor, as many have shown they are ready to transact now if they believe that the price is right,” David Godchaux has summarized.

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