The prospect of strong capital and above-average rental returns has seen investment flow from Pakistan to Dubai for almost two decades now.
As we head into the stabilisation period of Dubai’s 3rd major growth cycle, the appeal remains stronger than ever.
Recent full-year figures underline this. Pakistanis have emerged as the third-largest investors in Dubai’s real estate market, contributing a substantial $10.6 billion. This positions them just behind Indian investors, who lead with $29.8 billion, and British investors with a total investment of $14.7 billion.
Further evidence from the Dubai Land Department (DLD) shows over 46,000 Pakistani acquisitions made by more than 32,000 investors over the past decade.
Sultan Butti bin Mejren, director-general of DLD stated: “This positions Pakistani investors among the highest investing foreign nationalities in Dubai’s real estate sector. This underscores the attractiveness of the investment options that Dubai offers Pakistani investors, especially when it comes to high return on investment and the preservation of real estate rights.”
The Dubai property market has solidified its status as the world’s largest offshore investment hub for foreign investors, boasting a staggering $146 billion in foreign wealth.
This is twice the wealth invested in the London real estate market and the EU Tax Observatory reports nearly 20,000 unique foreign owners from Pakistan – as mentioned, making them the third-largest group, trailing behind only Indian and British investors.
Dubai vs London for Pakistani investors
Dubai’s real estate market now surpasses London in terms of wealth invested by foreign investors through shell companies, reaching $146 billion.
Dubai’s real estate dominance
Dubai’s construction and real estate sector accounts for a fifth of the Emirates’ GDP, highlighting it as a real core fiscal pillar of a developing global powerhouse.
Pakistani interest in Dubai real estate could initially be attributed to close ties and geographical proximity and the sound supply and demand foundations that underpin any long-term investment venture. However, the emirate does have a wider appeal to investors from Pakistan.
Dubai’s real estate market has witnessed tremendous growth in 2023, building on the momentum from the previous year and early pandemic recovery.
The heightened demand is attributed to external factors, such as geopolitical events like Russia-Ukraine, but the market retains a strong underlying investment appeal.
Anticipating the trend to continue, there is an expectation of sustained strong demand in the villa market for 2024 – particularly from Pakistan.
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