• Prime real estate purchases as much as 40% more expensive in Singapore and 50% more expensive in Moscow and Paris.
• Dubai’s ultra-prime property market can be as much as 60 – 70% lower when compared to Shanghai and Tokyo, despite the additional quality and space
• Quality, value, yield, capital return and Dubai’s excellent transport infrastructure keep high net-worth investors coming back, says G&Co boss
Dubai is once again the undisputed leader when it comes to attracting high net-worth investors from the GCC countries, according to Joseph Ghossoub, Chairman of luxury residential real estate developer, G&Co.
It is estimated that in 2016, 63% of the GCC’s High Net Worth Individuals (HNWI) courted investment opportunities in the world’s top luxury real estate destinations, including New York and Singapore. In London, the region’s HNWIs were responsible for $600 million of investments over 12 months.
These prestigious cities offer some of the world’s most alluring opportunities and returns. However, in 2017 the tide turned, once again and Dubai regained its crown as the preferred investment destination for GCC investors.
“Dubai is well accustomed to topping league tables, competing with the most established and exciting metropolises on multiple fronts, from its hotels and airlift to its dynamic business environment,” said Ghossoub
“Today the emirate’s thriving luxury real estate sector is once again the preferred destination for GCC investors, in terms of the quality and diversity of luxury property development and the returns that can be achieved,” he added.
When compared to Singapore, Dubai’s prime real estate demands a typical investment cost of 8%, compared to Hong Kong’s 32% and Tokyo and Singapore’s 20%. Further, data published by Core Savills demonstrates the outright cost of property in Dubai’s ultra-prime market can be as much as 60 – 70% lower when compared to Shanghai and Tokyo, despite the additional quality and space.
In fact, the entire property cycle is enhanced in Dubai with prime purchases as much as 40% more expensive in Singapore and 50% more expensive in Moscow and Paris. When stacked up against Hong Kong, Vancouver, Sydney and London, Dubai is the most attractive destination for buying, selling and holding property.
In part, the trend is the result of strong supply in the mid and affordable sectors – a recalibration of predominantly luxury stock that has dominated both pipeline and delivery over the last two decades.
“In short – if you have $1 million, Dubai is the place to put it,” commented Ghossoub.
In Singapore’s prime market, $1 million will secure around 90 square metres of prime real estate, compared to 22sqm in Monaco, 52sqm in London and 60sqm in Shanghai. In Dubai that can stretch to over 105sqm.
“When those values are transferred to the ultra-prime market, the proposition becomes even more attractive,” said Ghossoub.
In Singapore, $1 million will buy 66 square metres, compared to 9sqm in Monaco, 20sqm in London and 35sqm in Shanghai. In Dubai $1 million will secure 83sqm of ultra-prime property.
The emirate’s developers have been instrumental in supporting the market’s maturation and bringing world-class – not to mention world first – design and living experiences to the emirate.
As a leading stakeholder in the Dubai real estate market, G&Co has transformed luxury living through intelligent, contemporary design and high-quality materials. In line with international findings, G&Co’s client base comprises of 60% repeat investors, which aligns the aims, actions and ambitions of all of its stakeholders.
“As the old adage goes, it’s about creating the right product, in the right location, at the right price and, in the context of the world’s leading investment destinations, Dubai ticks all the boxes for experience, opulence and, crucially, returns,” said Ghossoub.