Dubai ranks as the most popular city for second home purchases among high-net-worth individuals across the globe, as forecasts predict Dubai’s economy is set to grow from 3.8 per cent to 4.5 per cent in the coming years, according to a leading industry expert.

As Dubai demonstrates further growth as a global commercial hub and a leading tourism destination, the emirate’s real estate market remains a key sector that continues to attract international buyers and investors, stated Germany-based property brokerage firm Engel & Völkers.

One of the world’s leading service companies, Engel & Völkers is a specialist in the brokerage of premium residential property, commercial real estate, yachts and aircrafts. It has bases in over 800 locations across 30 countries.

The brokerage said investors from key overseas markets such as India, Pakistan, Saudi Arabia, UK, Egypt, Jordan, Lebanon, China and US were constantly on the look-out for opportunities across Dubai’s thriving real estate segment - placing strong focus on properties that can be rented out for profit or held as investments, it stated.

"The city features among the top 10 fastest growing premium property markets globally. Winning the bid for the World Expo 2020 continues to boost government investment enabling progress of improved infrastructure, stability and security for both domestic and international investors," remarked Matthew Bate, the chief executive of Engel & Völkers Dubai.

"In addition to this, the Dubai Land Department (DLD) legal frameworks are set to further protect investors and consumers alike," he added.

"Dubai's ranking is reflected in rising levels of interest from international buyers," observed Bate.

Engel & Völkers Dubai’s growing 11 per cent market share of sales and leasing transactions on Nakheel’s Palm Jumeirah last year, ensuring its domination in the prestigious location, reiterates this fact.

Other areas with strong growth in Q3 and Q4 2017 include Nakheel’s Jumeirah Park, Jumeirah Islands, Al Furjan & Warsan Village. In addition, the company also witnessed increased success with Dubai’s leading developers in 2017; Emaar, Dubai Properties and Meraas in particular.

The communities in the secondary market that achieved most successful market penetration for Engel & Völkers in 2017 include Dubai Marina/JBR/JLT, Downtown, Business Bay, Dubai Land, Sports City/Motor City and Emirates Living, said Bate.

With strong economic growth and low interest rates, the demand for premium real estate in the emirate is expected to continue well into 2018, he added.

According to him, the emirate's appeal is set to spike further in the eyes of international investors, given the surge in real estate investment opportunities ahead and the government plans for 2020 and beyond.

As per recent statistics from the DLD, foreign buyers accounted for around 20 per cent of real estate transactions in Dubai in the 18 months up to June 2017.

DLD also revealed that buyers from these markets invested Dh151 billion ($41 billion) into Dubai realty during this period. Riding a wave of positive market sentiment, the German brokerage firm closed out its second full year of operations, recording a 64 per cent year-on-year (YoY) increase in revenues, following a 73 per cent growth from 2015 to 2016.

With the total number of transactions exceeding 1,350 in 2017, Engel & Völkers has established itself as one of the largest real estate service providers in the GCC with over 155 professional consultants covering 44 nationalities, it added.-TradeArabia News Service