Prime Dubai property much cheaper than other cities – report

Prime Dubai property is significantly more affordable than that other major cities including London, according to a new report.

CBRE’s Global Living Report found that the emirate’s residential market was less than half as expensive per square foot as the UK capital and affordable compared to New York and Hong Kong.

Factors including low import taxes for importing high quality materials and the cost and access to labour meant prime property in Dubai averaged $1,300 psf compared to $3,000 psf in London. A lack of land in cities including Paris, London, New York and Barcelona were other factors pushing up prices elsewhere.

“A significant factor affecting property prices is global currency fluctuations. The markets pegged to the dollar, and also the relatively strong UK sterling are looking comparatively more expensive. Conversely a competitive euro has opened up markets like France and Spain in mainland Europe,” said CBRE MENA head of residential Safina Ahmad

Hong Kong continued to hold the top spot at the world’s most expensive residential location at an average of $1,377 psf due to smaller sized apartments and supply constraints.

Istanbul, meanwhile was the lowest ranked on the list of 31 locations at $109 psf.

Top 10 Highest Value Locations *Average Property Price (US$ psf)
1. Hong Kong- 1,377
2. London- 996
3. New York- 819
4. Paris- 795
5. Singapore- 787
6. Tokyo- 678
7. Los Angeles- 652
8. Milan- 529
9. Rome- 509
10. Edinburgh- 497

Top 10 Lowest Value Locations *Average Property Price (US$ psf)
1. Istanbul- 109
2. Johannesburg- 118
3. Cape Town- 161
4. Lisbon- 188
5. Toronto- 215
6. Chicago- 227
7. Madrid- 238
8. Barcelona- 241
9. Sydney- 250
10. Bangkok- 255