According to a report by MEED, the UAE’s real GDP growth is expected to be 4 to 5 per cent between 2017 and 2020.The report also revealed that contracts worth about $22.6bn were awarded during the first half of 2016, mainly driven by real estate, power and transport schemes in Dubai.

The exponential rates of development coupled with a maturing property market that offers strong returns make Dubai a global hotspot for property investments today. Here are five compelling reasons to invest in the emirate’s real estate:

Growing economy 

Investing in an overseas property by extension means you are investing in the country’s economy. With Dubai’s economy growing steadily and poised to record a 3.7 per cent growth in 2016, up from 3.6 per cent last year, according to the IMF, it shows no signs of slowing down. Consequently, the market value of the emirate’s real estate finds a boost from positive socio-economic variables such as continuous population flow, widening job markets, rapid infrastructural development, increasing tourism and retail sector growth – significantly increasing the desirability and profitability of real estate.

Developing neighbourhoods

Dubai is home to a prosperous economy and a steady flow of expatriates and visitors. Responding to the demand of housing the inbound population, you will find a variety of developments being built across the city. On the one hand you have expansive villas, such as Damac Villas by Paramount Hotels & Resorts at Akoya, appropriate for the international tourist. The development sets the standards in luxury by offering investors a Hollywood brand of living along with facilities such as tennis courts, luxurious spas and access to an international golf course. On the other hand, hotel apartments such as those at Damac Maison Prive are ideal for professionals and business people alike.

Each of these property types is a lucrative investment option thanks to growing demand. Further, BMI Research predicts the value of the UAE’s construction industry to rise to AED181bn ($49.3bn) next year, up from 2016’s AED162bn. They also predict a 6 per cent growth in the run-up to Expo 2020. With the rise of such properties and infrastructural plans, Dubai’s neighbourhoods are expanding at an exponential rate, setting up multiple lucrative investment opportunities.

Low acquisition cost

The perks of a developing economy extend to the cost of its properties. Despite rapid growth and exceptional infrastructure recognisably at par with global standards, Dubai’s real estate industry is still in its budding stages when compared with international destinations such as London, New York and Hong Kong.

High appreciation potential and returns

Thanks to lower acquisition costs in a growing economy, the value of Dubai’s real estate market can only go up from here. With the city’s development still on the rise, there is no better time than now to invest in property that will show high appreciation in the years to come.

If you are not planning to sell your property in the long run, then you need to look at rental options. With Dubai’s real estate returns averaging at 7-9 per cent, easily 2-3 per cent higher than its matured international counterparts such as London, New York or Paris, the city becomes all the more attractive to investors. In prime areas, even a 10-12 per cent return is not uncommon.

No property tax

Picture a property valued at $500,000. In London, you can expect to shell out another $11,650 in property taxes, and in Hong Kong, be ready to part with $75,100. But buy the same property in Dubai, and you get to walk out with $0 in property taxes and a big smile on your face. That’s right –your decision to buy property in Dubai just got a whole lot easier!