Dubai real estate exceeds 6 global cities in “return on capital”

Dubai, in the rates of higher returns on capital in investing in the real estate sector, outperformed six global cities, including London, Paris, New York, Hong Kong, Sydney and Singapore, according to data revealed by a report and an analytical study on the real estate scene in Dubai, compared to the International Cities Index of First Class, prepared by “Forbes Global Brobalz”.

The report, whose details were revealed yesterday, indicated that Dubai recorded rapid progress in the real estate sector as a global city of the first category, with its location consolidating an integrated global center.

“Dubai is currently providing higher returns on capital compared to other global markets in the field of real estate investment, and that it excelled in the rates of returns over cities such as London, Paris, New York, Hong Kong, Sydney and Singapore, according to the indicators of the analytical report that was prepared.”

He explained in statements to «Emirates Today» that “according to market indicators, the average returns ranged on real estate investment in Dubai between 6%and more than 7%, while the returns rates range in medium in various other global cities that entered into the study of the report between about 2 and 5%.”

He pointed out that «the high returns on investment in the real estate sector in Dubai comes supported by several factors, the most prominent of which is the accelerated population growth and attracting investors from all over the world, especially from the categories of wealthy people from European and Asian countries, which constituted a growing growth in the demand for real estate, whether for purchase or rental purposes.

He added that «the high investment returns in real estate in Dubai compared to multiple global cities, due to price variables, a slight rise in the rate of risk -free return, and other factors.

He explained that «Dubai markets witnessed remarkable growth during the recent period in demanding real estate units of luxury villas and units (Town House), which supports the growing boom of these groups in the real estate markets».

He pointed out that “the report prepared entitled (Dubai is close to becoming a world -class city), provides an analytical framework, aimed at measuring the competitiveness of cities compared to the most existing urban centers in the world.”

He explained that «the report concluded that the real estate market in Dubai is developing steadily to become a mature global center, with the strong foundations of the market in Dubai and the increase in institutional capital flows that make it a long -term strategic investment destination. With the continued maturity of the market, it is expected to be comparable to stability and investment attractiveness, the largest real estate market in global cities.