Dubai ranks as the third most affordable major global city for purchasing prime residential property, according to the findings of a new survey by Savills.
Savills’ World Cities Prime Residential Index shows that Dubai property prices have dropped over the past five to ten years. The most affordable cities for the prime property were found to be Kuala Lumpur ($260 per sqft), followed by Cape Town ($330 per sqft), Dubai ($600 per sq ft) Barcelona ($650 per sqft) and Madrid ($730 per sqft).
The most expensive city in H1 for prime property was Hong Kong ($4,730 per sqft), followed by New York ($2,520 per sqft) and Tokyo ($2,150 per sqft).
In Dubai, prime property prices have fallen 20 per cent in the last five years due to high levels of new-build stock and global economic uncertainty, the report said.
Savills research found that Dubai was the fourth-best global hub for returns on investment (4.6 per cent).
Globally, price growth across prime city housing markets has continued to slow during the first half of 2019, rising by 0.4 per cent, taking the annual growth to 0.7 per cent. This compares to an annual increase of 5.1 per cent in the year to June 2018.