Dubai Real Estate vs. Global Property Markets

Dubai has long been a top contender in the global real estate market, attracting investors from around the world.

With its tax-free advantages, high rental yields, and investor-friendly regulations, Dubai competes with markets like London, New York, and Singapore. But how does it truly compare? Let’s explore key aspects of Dubai’s real estate market against other global property hotspots.

1. Property Prices and Affordability

One of Dubai’s biggest advantages is its affordability compared to major international cities. While prime properties in Dubai average $550 per square foot, cities like New York and London see prices well above $1,500 per square foot.

• Dubai: $550 per square foot
• London: $1,700 per square foot
• New York: $1,500 per square foot
• Singapore: $1,600 per square foot
• Hong Kong: $2,000 per square foot

Dubai offers luxury at a fraction of the price, making it an attractive option for international investors looking for premium properties without exorbitant costs.

2. Rental Yields

Dubai stands out for its high rental yields, averaging between 6-8%, significantly higher than cities like London and New York, where yields range from 3-4%.

• Dubai: 6-8% rental yield
• New York: 3-4%
• London: 2-4%
• Singapore: 2.5-3.5%

High rental returns make Dubai a lucrative market for buy-to-let investors, especially in high-demand areas such as Dubai Marina, Downtown Dubai, and Business Bay.

3. Taxes and Fees

Unlike many global markets, Dubai remains tax-free on property income, a huge advantage for investors.

• Dubai: No property tax, no capital gains tax, no income tax.
• London: Up to 28% capital gains tax, 3% stamp duty surcharge for foreign investors.
• New York: 1-3.9% property tax annually.
• Singapore: 15% buyer’s stamp duty for foreigners.
• Hong Kong: 15% buyer’s tax for non-residents.

Dubai’s tax-friendly environment makes it more profitable for investors seeking high net returns without heavy deductions.

4. Residency and Visa Benefits

Dubai offers real estate investors long-term residency options through the Golden Visa program, allowing them to stay in the UAE with property investments of AED 2 million+ ($545,000).

Other global cities do not offer direct residency through real estate investment or require significantly higher thresholds.

• Dubai: AED 2 million+ for a 10-year Golden Visa.
• Portugal: €500,000+ for a Golden Visa.
• USA: $800,000 investment for EB-5 visa.
• UK: Investor visa abolished in 2022.

5. Market Stability and Growth

Dubai’s market has proven to be resilient, rebounding strongly after COVID-19 with double-digit price growth in key areas. While London and New York have seen fluctuations due to economic instability and rising interest rates, Dubai continues to attract foreign capital with stable economic policies, high demand, and ongoing infrastructure development.

Final Verdict: Why Dubai?

Dubai offers affordable luxury, high rental yields, zero taxes, and long-term residency benefits, making it an ideal choice for global investors. Compared to traditional real estate powerhouses like London and New York, Dubai provides a more profitable and investor-friendly environment.

Whether you're looking to invest in high-end properties or secure long-term returns, Dubai’s real estate market presents one of the best opportunities for international investors in 2025.

Looking to invest in Dubai? Contact us today to explore the best opportunities in the market!