Dubai’s booming housing market attracts Asia’s rich, with ‘clear demand-supply imbalance’ set to push prices up further
- The UAE’s financial capital is one of the world’s most affordable luxury property markets, with US$1 million fetching a 1,130 sq ft home versus 226 sq ft in Hong Kong
- Dubai’s luxury home prices are set to rise 13.5 per cent this year after rising 44 per cent in 2022, the highest increase globally
Japan, Canada or Dubai? Hong Kong marketing executive Simon Cheng had been carefully weighing his options on where to buy real estate.
In Japan, he was worried about the tax, the location and the local economy. Between Canada and Dubai, he found the glitzy financial hub of the United Arab Emirates the more attractive of the two.
“Rental yield in Hong Kong is around 2 per cent, versus 6 or 7 per cent I expect in Dubai,” he said. “It’s a better long-term investment. I’m not worried about being unable to rent out my property in Dubai. People are rich there.”
The city is one of the world’s most affordable luxury residential markets, according to Knight Frank. US$1 million can fetch a 226 sq ft flat in Hong Kong, or a 1,130 sq ft home in Dubai, according to the real estate consultancy.
But it remains to be seen how much longer Dubai can hold on to that title, as the city’s property market is picking up momentum. Home prices in Dubai increased by 5.6 per cent in the first quarter, climbing for a ninth consecutive quarter, Knight Frank’s data showed. Luxury homes in particular surged 44 per cent last year, the highest globally, compared with the 1.3 per cent decline in Hong Kong.
