Luxury homes 13-times cheaper in Dubai than Monaco
Posted on 06 April 2011 with 3 comments from readers
Luxury homes are selling for 13 times less in Dubai than Monaco which this week came out top in a survey of the world’s most expensive luxury residences by Knight Frank.
Monaco homes cost an average of $65,600 per square metre while comparable properties in Dubai sell for $5,000 per square metre. Both cities have zero income tax.
Monaco’s biggest deal last year was La Belle Epoque, a 1,600-square-metre penthouse, sold for $340 million by Christian and Nick Candy in September. Something similar in Dubai would cost around $26 million but there are much better deals on offer.
$1m bargain penthouse
Consider a 460-square-metre penthouse on the Palm Jumeirah in the shoreline apartments? Yours for $1 million or $2,200 per square metre, and its hardly been used and is built to a luxury specification. The downside is the hated and debt-ridden Nakheel as your master developer and big service charges.
But if you look at Knight Frank’s index of price appreciation then you might still want to wait a while before buying in Dubai. Croatia came bottom of this list, followed by Dubai.
However, if you are seeking for property with long-term price appreciation potential buying low down this list might still be the best advice. Hong Kong fell big-time after the Asian financial crisis but is now back up on top.
People renting property in Dubai still sometimes grumble about high rents. But this new survey suggests that on global comparisons Dubai real estate has gotten very cheap for this type of city, and the oversupply of property also now appears to be easing (click here).
3 Comments posted by readers:
Dubai prices may be 13 times cheaper than Monaco, but Monaco is 100 times more desirable than Dubai.
Ed Note: Only if you can afford it!
Here in the US, it is customary to measure real estate prices in dollars per square foot (yeah, the US promised to convert to the metric system back in 1979, but that will never happen!).
Since there’s 10.56 square feet in 1 square meter, the Dubai cost (for the benefit of dumb Americans!) comes out to $473/ sq. ft. Wow!
@ Peter: What’s the annual tax rate on Dubai property?
Ed Note: 5% of the value of the property.
Yes, bud in Monaco the land is yours, in Dubai its never yours.
Compare apples with apples