Dubai transforms into a tier-1 global city as foreign investments rise

In the UAE, Dubai is experiencing a notable shift toward becoming a tier-1 global city, moving away from its previously high-growth and speculative market status. According to a recent report by Driven, the city ranks fifth out of seven benchmark cities, surpassing Paris and Hong Kong. This transformation is marked by evaluations concerning infrastructure, governance, safety, quality of life, and the economy based on insights from real estate developers, brokers, and finance professionals. The city’s appeal, rooted in lifestyle, security, and advanced infrastructure, has increasingly attracted scrutiny from international investors seeking relocation and residential opportunities. The momentum of investment in Dubai began to gain traction in the tumultuous period of global uncertainty in 2020, when many clients from Europe, Asia, and North America started expressing interest in establishing their lives there beyond mere property purchases. The report indicates that institutional capital is increasingly flooding into the market as investors show a willingness to accept lower returns in exchange for long-term stability. This shift in investor perception, focusing on Dubai’s evolving landscape, reflects not only confidence in its growth potential but also a desire to be part of its dynamic development. Recent initiatives, such as Brookfield’s sale of a 49% stake to international investors in a property deal valued at $1.5 billion, demonstrate this growing confidence among foreign investors. Furthermore, Brookfield is set to embark on a new mixed-use development in Dubai Hills, emphasizing the city’s appealing governance and overall quality of life. The influx of capital is a sign that foreign investors are not merely looking for high yields but are increasingly focused on the stability and long-term potential of Dubai’s real estate market, showcasing their belief in the city as an attractive investment destination. As surveyed in May 2025, 73% of market stakeholders believe that Dubai is at least on the verge of becoming or is already considered a tier-1 global city. This forecast illustrates the potential future impact of migration and investment trends on Dubai's economy and society. As some investors seek residency and a lifestyle change along with their financial interests, Dubai is taking significant steps to secure its position in the global urban hierarchy. However, experts caution that while the transformation to a tier-1 status is underway, it will require time and continued commitment from all parties involved in its evolution.