Tallest, biggest, largest – Dubai has always been described in terms of vastness of scale. The country’s transition from a trading to a tourist economy, hastened its transformation from a quiet and quaint country to a vibrant metropolis that continues to attract people from across the world. Dubai’s phenomenal real estate growth has been the key harbinger of change, driven largely by expatriates and foreign investors who see tremendous investment potential in the country. Attractive ROIs, quality property, sound regulatory laws and digital transformation have been a few significant reasons for the country to be considered one of the top 5-star real estate investment destinations in the world.

Considered a darling among real estate investors globally because of its high property returns (7%-8%) when compared to other cities, Dubai has consistently delivered more than promised. The country’s real estate sector has been on an upward growth trajectory over the last few years, with the Dubai Land Development (DLD) recording 69,069 transactions exceeding total value of Dh285 billion ($77.6 billion) in 2017 alone. 65% of this investment came from foreigners, Indians leading the way followed by Saudi Arab Nationals and Pakistanis.

JLL’s recent report, World Cities: Mapping the Pathways to Success ranks Dubai as the Top Destination For FDIs (Foreign direct investments) in Real Estate. The country is known as a top hybrid city across the globe, with its medium size giving it a unique ability to compete in specialized markets benefitting from large domestic markets. Resilient over the medium term, such cities feature among top real estate destinations, and are more livable when compared to peers.

Dubai has some of the world’s most iconic structures, Burj Khalifa and Palm Jumeirah being the most recognisable. The country’s government has increasingly focused on innovative methodologies, and digital disruption over the last few years. Their spending on infrastructure and development is phenomenal, with emphasis on quality and consistency. By diversifying into non-oil based sectors, the city is also witnessing boosted economic activity. All this has cumulatively led the country to be seen as a top choice for Expo 2020, which is further likely to promote Dubai’s ‘top investment’ status.

Given the exciting figures registered and the fact that the Emirates attracts such large sums of investment – higher than the GDP of some countries – a few unique factors can be directly attributed as drivers of this real estate growth phenomena, and why Dubai is seen as a top investment destination worldwide.

Return of Investment (RoI) – Investors build their portfolio on returns and real estate is one of the most promising avenues for windfall gains in investment. Rental income is very attractive when compared to outright property sale, where capital appreciation is only realised much later. In Dubai, rental ROI’s of villas have been at a consistent 5% over the last 5 years according to bayut.com, a popular Dubai-based online brokerage firm. Real estate returns average 7-8% for prominent regions across Dubai, with the country considered as among the best performing in the world. An investor could reap rental returns of Dh80,000 for a Dh1 million 2-bedroom apartment, recovering the entire investment in 12.5 years even without rental inflation. In case buyers pay only Dh500,000 or 50% at handover and rest in 3-5 years, even then the ROI is double as rent from the very first day could be Dh80,000, or 16 per cent

Strict Regulatory Compliance – Since 2007, Dubai has worked on making itself truly world class. As a part of Smart City 2021 initiative, His Highness Sheikh Maktoum put together a slew of measures to ensure better transparency in the country’s property dealings. Technological innovation, digital strategies, stringent regulations and integrated services in property transactions – from development, valuation and marketing, to brokerage and purchase – have built greater trust and shored up the country’s image.

Liberal Foreign Exchange – Dubai has always given priority to its people. The country’s regulatory measures, ensure businesses function smoothly with least amount of interruption and inconvenience. Strong foreign exchange laws, allow free and unrestricted movement of capital and profit. Its global connectivity and infrastructure, makes it an attractive property investment destination.

JLL’s Global Real Estate Transparency Index, ranked Dubai as one among the world’s most promising real estate markets, and leading in the MENA region. Sound regulatory reforms, improved transparency, world-class attractions, matured markets and quality of real estate have consistently proven the country’s stature as a profitable property investment option, one that will continue reaping returns for several years.