Dubai is known as a multicultural city. No matter which country you belong to, you will surely not miss your country in Dubai. It is known as the “land of opportunities,” and many people from different countries come here to try their luck. You must have heard a lot of people buying out property around here. Well, according to a report by Knight Frank, Dubai is one of the world’s most ‘affordable’ destinations for a luxury house.
One Of The World’s Affordable Destinations For A Luxury Home
Knight Frank’s report, “Dubai Residential Market Review, Winter 2022–23,” revealed that most submarkets in Dubai have property price-to-income ratios that are less than six times annual incomes. Generally speaking, the affordability barrier is six times the annual household income, which is roughly the maximum mortgage amount most banks are willing to offer.
In order to assess the affordability of the general market, the report analysed the relationship between the average salary and the average house price in each neighbourhood in Dubai. Through analysis of the study, it came to the conclusion that the city is actually one of the world’s most ‘affordable’ destinations for a luxury home.
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Dubai Is Considered As A Top Market For Second Homes
The only three neighbourhoods in which house values exceed 20 times the average household income are The Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island. These three premier luxury submarkets are the outliers. Demand is anticipated to rise here because most foreign purchasers are drawn to Dubai’s unrivalled sun-sea-sand lifestyle, which often comes with villa or waterfront purchases.
The days of Mediterranean-themed residences are swiftly passing Dubai by, and ultra-modern constructions are quickly taking over. The prime residential areas in Dubai are still some of the least expensive in the entire globe. This, together with the premium residential products that are now offered in the highest echelons of the market, are solidifying Dubai’s place as one of the top markets for second homes worldwide.
ZQ Lee
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Cover Image Courtesy: Media Library
First Published: February 14, 2023 7:56 PM