Study: Dubai has ‘real estate X-factor’

Dubai BurjSeven cities in East and South Asia, the Middle East and Australia – including Dubai – make up more than half of ‘World City X-factor Ranking’, according to real estate consultancy firm Savills. According to the study, global competitiveness, prominence, long-term appeal and stability have contributed to the real estate sector of Singapore, Hong Kong, Tokyo, Shanghai, Dubai, Sydney and Mumbai. Connectivity, web search rankings and international tourist arrivals are the other factors that determined the 2014 ranking.

The report also noted that Singapore – the world’s most expensive city – is currently tied in third place with Paris but is set to rival the top-ranking cities, New York and London, in the near future in terms of market performance. Tokyo, which takes sixth place, leads the residential and commercial real estate yield ranking and is “favoured by more adventurous investors.”

Mumbai, Hong Kong and Shanghai are identified as the world’s “hottest” property markets, with Hong Kong offering the best combined office and residential costs, while New York, Sydney and Moscow are the “coolest” markets, which are considered to have the biggest scope for growth.

“Non-prime mainstream housing stock is now an attractive buy for investors,” said Yolanda Barnes, director of Savills World Research. “On a world stage, London’s mainstream values look cool, while Dubai and Hong Kong look more fully valued.  We now expect that secondary and even tertiary markets in our world cities could offer superior growth compared to prime over the next five years,” she added.

Barnes named Istanbul, Hanoi, Kuala Lumpur, Jakarta and Bangkok as the second-tier cities to watch in the coming years that could offer good alternative to investors.

The Savills report compared the gross rental income to the ten-year government bond data in each country to determine the final list of twelve cities. The “investability” of these top-tier cities will shape the future of the world’s property market, the report noted.



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Seven cities in East and South Asia, the Middle East and Australia - including Dubai - make up more than half of ‘World City X-factor Ranking’, according to real estate consultancy firm Savills. According to the study, global competitiveness, prominence, long-term appeal and stability have contributed to the real estate sector of Singapore, Hong Kong, Tokyo, Shanghai, Dubai, Sydney and Mumbai. Connectivity, web search rankings and international tourist arrivals are the other factors that determined the 2014 ranking. The report also noted that Singapore - the world’s most expensive city - is currently tied in third place with Paris but...

Dubai BurjSeven cities in East and South Asia, the Middle East and Australia – including Dubai – make up more than half of ‘World City X-factor Ranking’, according to real estate consultancy firm Savills. According to the study, global competitiveness, prominence, long-term appeal and stability have contributed to the real estate sector of Singapore, Hong Kong, Tokyo, Shanghai, Dubai, Sydney and Mumbai. Connectivity, web search rankings and international tourist arrivals are the other factors that determined the 2014 ranking.

The report also noted that Singapore – the world’s most expensive city – is currently tied in third place with Paris but is set to rival the top-ranking cities, New York and London, in the near future in terms of market performance. Tokyo, which takes sixth place, leads the residential and commercial real estate yield ranking and is “favoured by more adventurous investors.”

Mumbai, Hong Kong and Shanghai are identified as the world’s “hottest” property markets, with Hong Kong offering the best combined office and residential costs, while New York, Sydney and Moscow are the “coolest” markets, which are considered to have the biggest scope for growth.

“Non-prime mainstream housing stock is now an attractive buy for investors,” said Yolanda Barnes, director of Savills World Research. “On a world stage, London’s mainstream values look cool, while Dubai and Hong Kong look more fully valued.  We now expect that secondary and even tertiary markets in our world cities could offer superior growth compared to prime over the next five years,” she added.

Barnes named Istanbul, Hanoi, Kuala Lumpur, Jakarta and Bangkok as the second-tier cities to watch in the coming years that could offer good alternative to investors.

The Savills report compared the gross rental income to the ten-year government bond data in each country to determine the final list of twelve cities. The “investability” of these top-tier cities will shape the future of the world’s property market, the report noted.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00