Dubai among top cities for what $1m buys in property around the world
Knight Frank report reveals how many square metres you can get for your money in key cities
Dubai has been named one of the top cities in the world for how many square metres of prime property can be bought for $1 million (Dh3.67m).
Knight Frank's 2019 Wealth Report placed the city in third place out of 20 key global cities, with only Cape Town and Sao Paulo offering up more area for the money.
Dubai's 143sqm was an increase on Knight Frank's data from the second quarter of 2018, when it offered 137 square metres for $1m.
This comes as property prices in the UAE declined during the past few years amid lower oil prices and increased housing supply. Knight Frank said prices for luxury homes in Dubai fell 3.4 per cent last year.
• You can see how much $1m buys in the 20 key cities in the slideshow at the top
For the 100 luxury residential markets tracked by Knight Frank, the latest report showed an average value increase of 1.3 per cent, down from 2.1 per cent in 2017.
"This decline comes as little surprise," it said. "As we learn to live without the ultra-low interest rates that have supercharged real estate markets globally since 2008, lower price growth is an inevitable consequence of the shift in monetary policy."
The highest price increase of 11.1 per cent was recorded in Manila, driven by a lack of supply and a thriving economy with GDP growth above 6 per cent, while Edinburgh experienced a price rise of 10.6 per cent, and Berlin 10.5 per cent.
At the other end of the scale, prices in Vancouver fell 11.5 per cent, while London was down 4.4 per cent with the UK gripped by Brexit uncertainty.
"The impact of Brexit has been largely priced into the prime London market since the referendum in 2016, with prices in some neighbourhoods falling by as much as 20 per cent," the report said.
"However, there is growing evidence of pent-up demand as buyer registrations build, suggesting that when – or if – a deal is agreed, there may be a bounce as those who have been wavering on the sidelines decide to commit.
"The consultation period for a non-resident Stamp Duty Land Tax surcharge is now under way but international buyers, particularly those with US dollars, may be unfazed by the proposed 1 per cent tax if the pound takes a tumble."
Updated: August 4, 2019 05:08 PM