Dubai: While its billionaire population is no match compared to that of London, Dubai is still attracting many of the world’s ultra-rich.
According to a new report by Wealth-X and Sotheby’s International Realty, ultra high-net-worth (UHNW) individuals are spending millions of dirhams on Dubai’s luxury properties because it offers excellent value for their money.
Dubai has everything an ultra-wealthy investor may desire, including year-round sunshine, world-class shopping, international sporting events and cosmopolitan lifestyle, but many of its properties can be acquired for approximately $834 (Dh3,000) per square foot, more than three times lower than the average price of an apartment in London.
An earlier study by Christie’s International Real Estate showed that there are more wealthy investors buying prime property in Dubai than in traditional hotspots in the United States or United Kingdom. Among the 80 property markets surveyed, Dubai ranked first, with three quarters of prime property buyers hailing overseas, compared to 44 per cent in London and 40 per cent in Miami.
Wealth-X and Sotheby’s said that a third of property listings worth at least $1 million in London have a price tag of above $10 million. In comparison, only eight per cent of high-end residential apartments and villas in Dubai carry the same price.
Besides the attractive prices, Dubai, which accounts for nearly 500 ultra high-net-worth individuals and 34 billionaires, is also home to different nationalities with varied cultural background, making it genuinely cosmopolitan.
It offers excellent facilities and modern architecture, including the world’s tallest building, the Burj Khalifa and the only seven-star hotel in the world, the Burj Al Arab.
“The cosmopolitan nature of Dubai has made it an extremely attractive real estate market for a wide range of investors from all over the world who are looking to invest in a rapidly growing and secure real estate market,” the report said.
“In addition to world-class shopping, the city features many international sporting events throughout the year, including the Dubai World Cup, the world’s richest horse race and the annual rugby sevens.”
“Amid the towering skyscrapers and modern architecture, traditional souqs can be found, offering everything from spices to gold, and giving a greater sense of history to the city.”
Considering all of these factors, analysts at Wealth-X and Sotheby’s said that Dubai has the potential to become one of the world’s fast-growing hubs for the super wealthy in Europe, Middle East and Africa region in the coming years.
However, real estate prices in Dubai have been on a downward trend, with the rates for apartments dropping 1.5 per cent in the first six weeks of the second quarter this year.
Analysts said the decline is only a correction and has been due to the sluggish demand from investors whose purchasing power has been hurt by falling oil prices and strengthening of the US dollar.
