Dubai was the tenth in the Core Savills’ ranking of the leading world cities’ for the cost of real estate.
According to a study conducted by the real estate and consultancy firm Core Savills, though Dubai positions itself as a number one luxury center in the Middle East, local real estate is still relatively affordable compared to other leading global cities.
In the Core Savills rating, the "future city" took the last position in the Top-10 by the average cost per square meter. The emirate closed 2016 with this indicator at the level of AED 24,419 per square meter at the secondary market. And this means that property prices in Dubai demonstrated a whooping average growth of 120% in the last 10 years. The first place in the ranking of the most expensive global cities expectedly went to the Principality of Monaco, where elite real estate increased in price by unseen 180% in the last 10 years, and averages now to AED 165,000 per square meter.
For the developed global economies such growth rate seems almost unimaginable, but for the developing Dubai, this growth level is the norm, especially for such prestigious areas as
Dubai has been growing and developing over the years, which lead to prices volatility becoming one of its main traits at the real estate market. New areas are expanding, old ones are getting a convenient infrastructure, and property prices in different locations can differ significantly, which makes it rather difficult to deduce the average. But Core Savills took a closer look at certain areas and buildings, and found, for example, that Palm Jumeirah’s development over the years made it possible for the man-made island to even outperform top global cities by the psm property price with an impressive 238 per cent of growth over the decade. On the other hand, Emirates Hills growth was only 45% during that time, while apartments in the world’s tallest tower of The Burj Khalifa even lost 12% in price since Q1 2010.
The second place in the Core Savills’ ranking went to Hong Kong (AED156,521 per square meter), followed by Tokyo, London and New York in the Top-5. Shanghai, Paris, Moscow and Singapore followed suit.