Dubai is once again the undisputed leader when it comes to attracting high net-worth investors from the GCC countries, overtaking the global luxury real estate favourites such as New York, London and Singapore, said an expert.

The quality, value, yield, capital return and Dubai’s excellent transport infrastructure are the factors that drive high net-worth investors back to the city, said a boutique real estate developer G&Co.

It is estimated that in 2016, 63 per cent of the GCC’s High Net Worth Individuals (HNWIs) courted investment opportunities in the world’s top luxury real estate destinations, including New York and Singapore.

In London, the region’s HNWIs were responsible for $600 million of investments over 12 months.  

These prestigious cities offer some of the world’s most alluring opportunities and returns. However, in 2017 the tide turned, once again and Dubai regained its crown as the preferred investment destination for GCC investors, stated the developer.  

"Dubai is well accustomed to topping league tables, competing with the most established and exciting metropolises on multiple fronts, from its hotels and airlift to its dynamic business environment," remarked Joseph Ghossoub, the chairman of G&Co.

"Today the emirate’s thriving luxury real estate sector is once again the preferred destination for GCC investors, in terms of the quality and diversity of luxury property development and the returns that can be achieved," he noted.  

When compared to Singapore, Dubai’s prime real estate demands a typical investment cost of 8 per cent, compared to Hong Kong’s 32 per cent and Tokyo and Singapore’s 20 per cent.

Further, data published by Core Savills demonstrates the outright cost of property in Dubai’s ultra-prime market can be as much as 60 – 70 per cent lower when compared to Shanghai and Tokyo, despite the additional quality and space, stated Ghossoub.  

"In fact, the entire property cycle is enhanced in Dubai with prime purchases as much as 40 per cent more expensive in Singapore and 50 per cent more expensive in Moscow and Paris.

When stacked up against Hong Kong, Vancouver, Sydney and London, Dubai is the most attractive destination for buying, selling and holding property, he noted.  

In part, the trend is the result of strong supply in the mid and affordable sectors – a recalibration of predominantly luxury stock that has dominated both pipeline and delivery over the last two decades.  

"In short – if you have $1 million, Dubai is the place to put it," added Ghossoub.

In Singapore’s prime market, $1 million will secure around 90 sq m of prime real estate, compared to 22 sq m in Monaco, 52 sq m in London and 60 sq m in Shanghai. In Dubai that can stretch to over 105 sq m.   

“When those values are transferred to the ultra-prime market, the proposition becomes even more attractive,” explained Ghossoub.  

In Singapore, $1 million will buy 66 sq m, compared to 9 sq m in Monaco, 20 sq m in London and 35 sq m in Shanghai. In Dubai $1 million will secure 83 sq m of ultra-prime property.   

The emirate’s developers have been instrumental in supporting the market’s maturation and bringing world-class – not to mention world first – design and living experiences to the emirate, he noted.  

As a leading stakeholder in the Dubai real estate market, G&Co has transformed luxury living through intelligent, contemporary design and high-quality materials.

In line with international findings, G&Co’s client base comprises of 60 per cent repeat investors, which aligns the aims, actions and ambitions of all of its stakeholders, he added.-TradeArabia News Service