High GDP per capita, infrastructure boost realty

dubai — With its high gross domestic product per capita and ambitious investments in building a world-class infrastructure, investing in premium residential real estate in Dubai guarantees strong returns for international investors, according to market experts.

A comparative study on the cost of residential real estate versus the GDP per capita in key city hubs globally has revealed that Dubai offers one of the most attractive value propositions for investors, who are seeking stable and growing returns.

This is further underpinned by Dubai’s status as one of only 20 metropolitan areas in the entire Middle East and Africa compared to 51 metro areas in the United States, 43 in Western Europe, 25 in Advanced Asia Pacific, 20 in Emerging Asia-Pacific, and over 103 in China.

Between 2014 and 2016, the 300 largest metro areas identified by Brookings, accounted for 36 per cent of global employment growth and 67 per cent of global GDP growth. Further, about one-third of large metro areas in Mena are expanding employment and GDP per capita faster than their respective nations, highlighting the growth potential offered by metro areas such as Dubai.

With the cost of residential property in premier locations such as Dubai Creek Harbour and Downtown Dubai estimated at about $550 (Dh2,020) per square foot, and the GDP per capita in the UAE at $40,698, analysts point out that the potential for growth for Dubai is significantly higher than other major city hubs.

Clearly, Dubai — despite its high GDP per capita — offers the most competitive residential real estate in its most premium destinations.

This has further catalysed interest by high net worth individuals in investing in Dubai’s prestigious developments such as Dubai Creek Harbour, Downtown Dubai, Dubai Hills Estate, Dubai Marina and Emaar Beachfront, among others. This year, all residential destination launches in these developments recorded strong investor response, especially from international investors.