While Dubai is often considered an expensive place to live, a subdued property market has raised the emirate’s rental properties to the top of the rankings for size of space available for $10,000, according to Knight Frank.
Global rent research by the real estate consultant across eight global cities found that $10,000 per month gets a Dubai tenant 4,892 sq. ft. By contrast, Hong Kong is the most expensive city by residential property rent, where the same amount will get tenants 1,495 sq. ft.
Madrid is second best city that offers value in terms of price per square foot. For $10,000 per month, one can rent 4,801 sq. ft. in Spain’s capital.
After Hong Kong, New York was the second most expensive, followed by Singapore, London, Sydney, and Shanghai.
The global comparisons are based on a three-bedroom apartment in a central location, Knight Frank said.
Dubai’s property market had been subdued in recent years, further exacerbated by COVID-19. However, stimulus activities by the government have begun to instill confidence in the market.
According to Faisal Durrani, head of Middle East Research, Knight Frank, the average property values rose by 0.7 percent during the first quarter of 2021 - the strongest rate of growth since summer 2016.
“The impact of the economic stimulus measures has been slower to filter through to the luxury rental market, with rents in this top-tier segment of the market declining by 0.5 percent during Q1.
“It is worth noting however that luxury rents grew by 1.8 percent during March 2021, the first increase in 12 months and the strongest rate of growth since October 2013, suggesting that the window for securing luxury “bargains” may be on the cusp of reversing,” he said.
Global real estate advisors Savills said in a recent report that Dubai is also now being considered as a viable alternative to many European cities due to its handling of the pandemic, balancing an effective inoculation drive, whilst keeping the emirate’s economy open for business.
According to Savills latest ‘Market in Minutes’ report, Dubai has emerged as the location of choice, especially for tech companies, keen to expand in the region.
Dubai was ranked 21 on out of 209 cities globally in Mercer’s 2020 Cost of Living Survey, while Hong Kong was ranked number one as the most expensive.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
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