An economic rebound has catapulted house prices and rents in Dubai to Manhattan-like peaks, according to the Gulf's most popular property website Dubizzle.
Rents fell 1% in the third quarter after 10 straight quarters of price rises, property consultants CBRE reported this week. But the sustained cost of living surge has driven hundreds of families to relocate to smaller homes on the fringes of the opulent, highrise urban canyon that soars out of empty desert.
Research by Dubai website Dubizzle showed rents and house prices in Dubai's prime locations now match those in Manhattan.
"We're talking about $2,000 to $3,000 (a month) for a rental in Manhattan," said Ann Boothello, property product marketing manager at Dubizzle, which attracted 2.4 million monthly visitors to its property pages in the third quarter.
"For a one-bedroom apartment in Manhattan it would be about AED1.9 million ($517,388), which would be the same for a prime community here."
Costs have kept rising and the emirate jumped to 67th spot among the world's most expensive cities to live in the world compared to the 90th position last year, according to the 2014 Mercer cost of living survey.
Some rents in the Dubai Marina, for example, jumped by more than 50% between August 2013 and February 2014.