Global Cities: Dubai, Kuala Lumpur and Sao Paulo best for housing prices

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Published 4 weeks ago

Every year, Knight Frank- a leading global estate agency, residential and commercial property consultancy firm releases its Global Affordability Monitor 2019 at the beginning of February. The Affordable Housing team earmarks 32 “global cities” and analyses the house price to income ratio, the proportion of an income which makes up the rent and also compares the real house price growth to the real income growth. Here are the most affordable “Global cities” shortlisted by Knight Frank.

Dubai

Dubai
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The housing prices have been falling for several years in Dubai and industry analysts suggest this trend will not stop until at least 2020. In Dubai, you can rent a fully furnished flat of 85 sq.m in an “expensive” area for around $ 2,145. An accomodation in a normally priced area would only be around $ 1,632.

Istanbul

Istanbul
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Despite the rising housing prices, Istanbul remains one of the most affordable to find an accomodation. In Turkey’s largest city, it costs around $ 673 monthly to rent an 85 sq.m accommodation in an expensive area and $ 409 in an area considered average. Turkey also grants citizenship to foreigners purchasing property of more than $ 1 million.

Jakarta

Jakarta
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Indonesia is known for its low cost of living and its largest city, Jakarta is no exception. Housing costs are also extremely affordable in Jakarta. An 85 sq.m accommodation in expensive areas of Jakarta cost $ 1, 104 a month while in a more average area it would cost $ 750 a month to rent out an 85m2 accommodation. However, Knight Frank explains in its report that to maintain this affordability, developers are having to minimise the size of new residential units.

Kuala Lumpur

Kuala Lumpur
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Kuala Lumpur is the most expensive city of Malaysia in terms of housing. Despite this, Kuala Lumpur remains one of the global cities with the most affordable housing around the world. Knight Frank explains in its report that it is the new supply of accommodation in Kuala Lumpur that is keeping the prices attractive. It costs $ 762 to rent a 85 sq.m accommodation in Kuala Lumpur’s most expensive areas and $ 441 otherwise.

Lisbon

Lisbon
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Housing prices are on the rise in Portugal as a whole, although the country remains one of the most affordable in terms of accommodation. It can cost around $200, 000 to buy an 85 sq. m flat in Lisbon and $ 1,430 to rent one in an expensive area or $ 1, 025 otherwise.

Manila

Manila
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The housing market is booming in Manila. From 10, 200 units in 2017, the residential units have gone to more than 25, 000 in 2018. This means that vacancies are on the rise, but accomodation prices are very low- making Manila one of the most affordable housing markets in the world. It costs $ 1,084 a month to rent out an 85 sq.m. accommodation in an expensive area and $ 499 otherwise.

Rome

Rome
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House prices in Italy have been on the decline for nine years, now. If the prices are rising a little in the cities, Rome remains one of the most affordable cities for housing in the world. In Rome, the most expensive prices for buying a house is $ 3,934 per sq.m. It costs $ 1, 744 to rent an 85sq.m flat in an expensive area and around $1, 202 otherwise.

Sao Paulo

Sao Paulo
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After the boom of 2008- 2015, prices in Brazil have kept on falling. Today, Knight Frank finds Sao Paulo is one of the most affordable markets in terms of housing price. In this colorful brazilian city, it costs $ 1, 109 a month to rent an 85 sq.m. apartment in an expensive area and $ 698 in a more average one.

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