Luxury property in Dubai has been named the most affordable in the Middle East.
Emirates 24/7 reports a recent study found $1 million (£599,000) could buy 146 sq m of prime real estate in the emirate, compared to only 15 sq m in Monaco, 32.6 sq m in Singapore and 25.2 sq m in London. This is despite the news prices rose by 17 per cent in 2013, compared to the year before.
Out of the 20 cities surveyed in the report, the emirate came in at number 19. This made it the second most affordable location of them all. Only Cape Town fared better, with $1 million expected to buy 215.1 sq m.
Dubai came eighth in the list of the top ten locations which showed the largest increase in property costs. Abu Dhabi came in just one place lower, after seeing charges rise 15 per cent over the last 12 months.
Meanwhile, Jakarta and Auckland were the top two locations, with prices going up by 37.7 per cent and 28.8 per cent respectively. Bali came in at third position, after costs increased by 22 per cent.
Dublin was the only European city to make the top ten. Achieving the number five position, it has prompted fears it could be heading for another housing bubble, which virtually crippled the construction and property industries in the wake of the global financial crisis.
Similar worries have also been expressed for Dubai, yet analysts point out such misgivings will prove to be unfounded. They point to the fact prices are still considerably below those achieved before the crash.
Property consultants JLL further dismissed fears of a bubble, claiming the housing market in the emirate has become much smarter, while investors had are behaving with more caution. Additionally, new policies and regulations have been introduced to closely monitor what is happening in the sector.
Citi was also quick to calm the nerves of those worried about Dubai's future. It noted current levels of construction were not creating the similar distortions to economic growth witnessed before the financial crisis.