Dubai has strong fundamentals that drives demand for real estate. With its central geographic location offering easy access to all parts of the world, its world-class infrastructure and high quality of living, the city is today regarded as one of the investment hotspots for international buyers.
There are several reasons that substantiate why Dubai is one of the world’s most attractive destinations for real estate investment. According to the Knight Frank Wealth Report, among 10 cities surveyed globally, Dubai is the most affordable market with an average price of $625 per sqft, 15% the average price in Hong Kong.
Gross yields of an average 6.27% in Dubai continue to be robust assuring investors of long-term returns – which is higher than the average yield in international markets such as Hong Kong at 3% and Singapore at 4%.
Further, a report published by the Dubai Media Office, highlights the strong potential for the real estate sector. With an average GDP per capita of $40,698, the cost of real estate in some of the premium locations in the city are “extremely competitive” compared to global cities.
Several factors continue to drive the positive performance of Dubai’s real estate sector. Among key initiatives, the recent changes in visa regulations – including the issuance of long-term visas for professionals and visa extensions for retirees who have invested in property – bring greater stability and long-term prospects for the industry.
Dubai also has an excellent regulatory framework with the Dubai Land Department ensuring the transparency of real estate operations to protect investor interests. Dubai’s focus on promoting the long-term stability of the property sector has resulted in property sector stakeholders adhering to regulations that boost market sentiment.
Read more: The state of play of the Dubai property market in June 2019 and beyond
The diversified economy, with the core sectors of retail, tourism, aviation, logistics, financial services and information technology, recording strong and consistent growth, Dubai has robust fundamentals that will continue to welcome professionals from around the world, driving demand for property.
As a global hub for business and leisure, and with the preparations for Expo 2020 Dubai catalysing the economy, the city offers a perfect growth environment for real estate investors. As one of the key metropolitan areas in the region, Dubai offers not only tremendous potential for growth but also ensures the well-being of residents through its high safety standards, access to quality educational institutions and healthcare facilities as well as a remarkable breadth of leisure attractions – all qualifying the city to be the first choice for families to live in and prosper.