Dubai and Miami Real Estate Markets – Foreign Investors Compare Investment Property Potential

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January 16th, 2014

The real estate markets in Dubai and Miami are often compared to each other for their similar climates, cultural diversity, vibrant nightlife, and lavish lifestyles. Miami has even been dubbed by some developers as the “Western Hemisphere’s version of Dubai.” Both cities are poised to continue their strong comebacks – Miami with a new condo boom that is more luxurious and expensive than ever and Dubai, experiencing steady growth and touting a whopping USD $464 billion in combined real estate developments.

According to recent study by Knight Frank real estate consulting firm, the luxury housing market for Miami is an average of about $1,500 USD per square foot while the average cost in Dubai is $650 USD per square foot. While those numbers differ from each other, both markets are well below the $2,300 USD per square foot average for New York. Further distancing the cost of Dubai real estate from that of Miami and New York is the influx of ultra high-end condo development that has reached to $5,000 USD per square foot in Miami and $10,000 USD per square foot in Manhattan.

Even with these higher prices, Miami’s high-end real estate market is doing extremely well with the city recently logging the most sales and fastest selling time in eight years and the highest median price since 2008. And because of its geographic proximity, Miami will continue to remain very attractive to investors from New York, Canada, UK, and Latin America.

A major component of Dubai’s real estate development boom is the city’s winning bid to host the World Expo 2020, which will provide economic stimulus and enhance the city’s global brand. Some of Dubai’s recent real estate growth may also be attributed to the city’s increasing role in the global sports scene, which was recognized by the 8th International Sports Event Management (ISEM) Conference ranking of Dubai as the second best sport city in the world.

Bolstered by a robust renewal in trade, travel and tourism, Dubai’s economic growth is likely to continue. Underscoring the endurance and vigor of Dubai’s property market, more than 160 different nationalities making property transactions were recorded last year according to the Dubai Land Department registry, with much of the demand for luxury homes in Dubai coming from the U.K. and Asia as well as Russia and America.

About Sterling Luxury Group

Sterling Luxury Group redefines the meaning of living a luxury lifestyle. From helping you select the perfect home through Sterling Luxury Homes, to refining the finishing touches of your interior decor through Sterling Home Styling, to styling you from head to toe through Sterling Personal Styling, let us redesign and restyle your life from Miami, New York, L.A., San Francisco and Dubai.

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