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19 March 2024

Dubai a top global city for real estate investment in 2015

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By Parag Deulgaonkar

Dubai is back in the list of top cities for real estate investment after investment volumes rose by a whopping 2174.3 per cent in the year to June 2014, according to a Cushman & Wakefield (C&W) report.

Ranked 186th in the previous report, Dubai is currently placed at number 39 in the list of top 50 cities, with investments volumes up 2174.3 per cent on an annual basis to $3.68 billion (Dh13.5 billion), the consultancy said.

The pace of increase in property prices in Dubai has slowed, but compared to 53 other global cities they are still increasing at the fastest pace in the world, according to.

In September, Knight Frank, UK-based real estate consultancy, said despite pace of price increase slowing down Dubai saw an annual price growth of 24 per cent in the year to March 2014 – the highest among the 54 cities analyzed by it.

Read: Dubai remains world's hottest property market

In the six-month period (Q4 2014 to Q2 2014) property prices rose by 7.4 per cent, while in the three-month period (Q1 to Q2 2014) prices were up by 3.9 per cent, the consultancy said.

The Dubai Land Department has stated that the total volume of real estate transactions reached Dh113 billion in the first six months of 2014.

According to C&W report, New York topped the list with investment volumes growing 10.9 per cent on an annual basis to $55.4 billion.

Taking the second place, London witnessed property investment volumes grow by 40.5 per cent to $47.2 billion, fuelled by cross-border investors. The third place was taken by Tokyo, which saw volumes rising 30.4 per cent to $35.5 billion.

Total global real estate investment volumes rose 17.2 per cent to $788 billion in the year to June 2014 with New York, London and Tokyo figuring as the top three destinations the world over for property investments, according to a report.

In the list of top cities for hospitality, Dubai was ranked third beating Singapore, Hong Kong and Paris. London took the top spot in list of 30 cities followed by New York.

Dubai, currently, has 77 five-star hotels, 83 four-star hotels, and 66 properties in the three-star category. The emirate is planning to increase mid-range hotels in order to meet the growing visitor demand expected for Expo 2020, which will be held from October 20, 2020 till April 10, 2021.

In the retail ranking, Dubai was placed 30th on the list with New York winning over London. Dubai is home to Dubai Mall, one of the largest malls in the world, with Dubai Holding announcing plans to start construction on Mall of the World, which is set to become the largest mall in the world by 2025.

“Competition, growth and change will bring forth more new global winners. While gateway cities remain a primary focus for investors, interest in a broader spread of locations is increasingly apparent due to improved confidence and finance availability as well as a lack of supply in core cities,” Cushman & Wakefield's International CEO Carlo Barel di Sant'Albano, said.

“Risk appetites have expanded in the US and buyers in Europe and Asia are following suit, particularly where local partners can be found. Looking forward to 2015, the global economy is anticipated to be firmer but still vulnerable, with trends divergent country-by-country. One of the most notable drivers for this will be the polarisation in monetary policy, which will be tightening in some areas but remaining loose elsewhere,” he added.