No Comments

Why Dubai’s Prime Real Estate Market Is Good For Long-Term Investors

If you’re looking for a long-term investment in real estate in Dubai, the prime segment of the market will provide the best returns, according to a new report from Core Savills.

The real estate consultancy said that low taxes, combined with a relatively low-cost prime market, made luxury real estate in Dubai a solid investment. Indeed, it said that prime and ultra-prime prices were among the lowest in any of the world’s major hub-cities.

What’s more, the market is relatively small, Core Savills said.

“Despite the popular global assumption that the majority of Dubai’s real estate stock and transaction volumes are concentrated in the prime and luxury end of the market, this sector represents just a small portion,” said David Godchaux, CEO of Core Savills.

“In fact, only 3% of residential transactions in 2017 were concluded within this segment.”

The point here is that there’s plenty of supply when it comes to prime real estate in Dubai. And as for the price point, well, that’s pretty attractive as well if you compare Dubai prime prices to those in other global cities.

For example, prime properties are 40% less expensive in Dubai than they are in Singapore, and 50% less expensive than Moscow or Paris. Buying and selling fees come to less in Dubai, too. They’re 8% less than in Shanghai, and 32% less than in Tokyo.

All of this means that, if you’re in it for the long haul, prime real estate in Dubai makes for a pretty attractive investment opportunity.

“The long-term investment potential in Dubai’s prime segment is reinforced by a nominal tax regime is reinforced by a nominal tax regime and notably low real estate investment costs,” said Godchaux.

“These costs, associated with buying, holding and selling property, can detract significantly from an investment and essentially erode the attractiveness of an asset.”