Dubai has a 20-year track record of strong economic growth, infrastructure development and political stability. In the recent years, the city has been a continuous attraction for foreign investors.
The fundamental attributes – geographic, economic and socio-political – provide the drivers for Dubai property demand. A pro-active government continues to offer economic catalysts (i.e. free zones) to corporations to stimulate enterprise, investment and trade as well as continued diversification of economic sectors towards transport & logistics, manufacturing, tourism, healthcare ,media production, construction and finance.
Once regarded as the business hub of the Middle East, Dubai is now known as the international business, and re-export centre. With the increasing number of businesses and multinational companies starting operations in Dubai, the inward migration of professionals and their families is also mounting. The tax-free salary in Dubai is one major attraction for professionals from the world over to relocate to this city. Additionally, it is the wealth of job opportunities and leisure activities that attract foreigners to purchase Dubai properties.
Dubai is politically stable and has a forward-looking, responsive Government with a progressive, pro-business attitude and a highly developed commitment to the private sector. The business friendly regulations and highly favorable tax and customs framework have played a key role in attracting business investment from all over the world in practically every sphere of economic activity. Moreover, consistently strong economic indicators and a relatively low cost work environment have contributed to Dubai’s rapid development and prosperity.
Dubai enjoys truly global connectivity. Its ultra modern airport handles 13.5 million passengers to over 140 destinations annually and its deepwater port has one of the largest throughputs in the world making Dubai, now, the third largest re-export centre in the world serving a massive regional market. Dubai is a modern, safe, multicultural city with state-of-the-art medical, education, entertainment, shopping and sports facilities, and an overabundance of amenities that make for a very high quality of life, Dubai is a city of choice for the modern professional and an ideal location for multinationals to establish a regional presence.
Significant regulatory and structural changes throughout the emirates offer more than sufficient justification for today’s Dubai real estate valuations. The strong fundamental economic environment, the induction of freehold rights, population growth, rapidly growing tourism and hospitality markets and substantial consumer and mortgage loan expansion all support a continuous rise in real estate prices. Without adjusting for the 0% income tax regime in the UAE, which significantly impacts the affordability of real estate, real estate prices per square meter relative to per capita GDP throughout the world prove that the UAE is currently at the low end of the range for real estate prices in countries of similar income levels. The implied trend value for UAE residential Dubai real estate is roughly US $7,200/ sq.m. or 2,500AED/SF average throughout the emirates.
