Dubai third most affordable city for prime property

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. This means that investors willing to hold property as an investment for a longer period of time can take advantage of attractive yields. In-house Savills research into prime residential rental yields, pinpoint Dubai as the fourth best global hub for returns on investment (4.6 per cent). Prime residential property prices in Dubai fell 1.9 per cent in the first half of the year due to an oversupply in real estate market that has been steadily contracting since mid-2014 as foreign investor interest cooled. Prime market prices declined 19.8 per cent in the past five-years to $600 a square foot "due to high levels of new build stock and global economic uncertainty," the Savills report said. Only London (down 18.1 per cent) and Moscow (down 15.1 per cent) reported similar price declines over the five-year period.