Comparing Dubai Real Estate Market with Other Global Cities

When it comes to real estate investment, global cities such as London, New York, Singapore and Dubai remain at the forefront. However, Dubai stands out among them mainly because of its significantly high returns on investment, tax-free environment, world-class facilities and premium lifestyle. Along with that, property prices in Dubai are also quite lower than in other notable cities, making it a global real estate investment hub. 

In terms of location, innovation, luxury and affordability, Dubai is considered a remarkable investment destination. Locals, expats and foreign nationals can invest, purchase and also own various types of residential and commercial properties for sale in Dubai. In simple terms, it presents a unique proposition in the global property market. 

No doubt, Dubai is a global investment destination, attracting investors from across the globe. However, investors must compare Dubai’s property market with other popular cities, including London and New York to make informed decisions. 

Key Factors That Make Dubai Different from Other Global Cities

Tax Benefits

If you are investing in the real estate sector then you should also consider taxes before investing because taxation can impact profitability, cash flow and ROI. Considering Dubai’s case, there is no property tax, capital gain tax, or inheritance tax in Dubai. What you earn is yours and you are not supposed to share your income with the government because Dubai does not impose annual income tax, making it a top investment destination for property investors.

High Rental Yields: 

The ultimate purpose of an investment is to obtain high returns on investment. Definitely, you will select a place that offers you maximum reward. Rental returns in Dubai are significantly higher than those in London, Singapore, and New York. Investors prioritize Dubai because this city tends to offer them maximum value and their desired ROI.

Investor-Friendly Policies

This city is also known for its investment-friendly policies. In the first place, this city allows expats and foreign nationals to invest, purchase and enjoy 100% property ownership of their purchased properties in freehold areas of the city. As a foreign investor, you can also enjoy exclusive ownership rights if you buy property in a freehold area no matter whether it is residential or commercial. In addition to it, property investors can also obtain long-term residency visas in Dubai. If you purchase property worth AED 2 million in Dubai then you become eligible to obtain a renewable long-term residency visa called Dubai Golden Visa.

Luxury at a Lower Cost

This is the age of luxury. Everyone desires to live a lavish lifestyle where they can enjoy the utmost comfort, elegance and extravagance. Luxury comes with a high cost. However, Dubai comes with an innovative solution. It provides affordable luxuries for real estate investment. Firstly, property prices in Dubai are comparatively lower than in other cities. Secondly, investors can purchase luxury properties for sale in Dubai through seamless installment plans and capitalize on attractive payment plans such as the 1% payment plan which allows investors to pay only 1% of the total amount each month after paying initial down payments.

Strategic Location: 

The location of Dubai is quite strategic. It is located at a crossroads of Asia, Africa and Europe. Its strategic position also makes it an investment hub, attracting businesses, professionals and entrepreneurs and increasing the demand for both residential and commercial real estate. In simple terms, it is a place where businesses can thrive, expand their portfolios and increase their customers.

Property Ownership Rights

Expats and foreign nationals can purchase, invest and enjoy 100% ownership of their purchased properties for sale in Dubai. They can purchase all sorts of real estate in Dubai’s freehold areas. It means you can have exclusive ownership over your purchased real estate in Dubai if that particular property is located in a freehold zone.

World-Class Infrastructure

This is a city of modern skyscrapers and iconic landmarks such as the Burj Khalifa and Palm Jumeirah. Its sophisticated infrastructure, world-class transport systems, seamless connectivity of different areas, road networks, seaports, and world-class airports make it a top-class investment destination in the world, attracting both local and foreign luxury seekers and property investors.

Dubai Property Prices vs. Major Global Cities: A Comparative Analysis

Dubai vs London

Property prices in London are much higher than that in Dubai. The cost of a luxury apartment located in Central London is even three times higher than the cost of a similar unit located in Downtown Dubai. Annual rental yield in London is 2-4% while the average annual rental range in Dubai is 5-9%. This figure reflects a significant difference in rental returns. In addition to that, no tax is levied against your income in Dubai but this is not the case in London where you are bound to pay property taxes.

Dubai vs New York

New York is considered one of the most expensive cities globally. It offers luxury real estate, especially apartments in Manhattan costing millions of dollars. On the contrary, Dubai offers affordable luxury real estate in several key areas. Rental returns in New York remain around 3-5.3% which is quite lower than that of Dubai. The average cost of real estate in New York, US even exceeds $700,000.

Dubai vs Hong Kong

Hong Kong normally offers 5-6% capital appreciation and 2-3% yearly rental returns. Along with that, this country also imposes taxes such as capital gain tax, making it an expensive investment option compared to Dubai because income tax is not levied in Dubai also this city extends high capital appreciation and rental returns. 

Dubai vs Singapore

When it comes to luxury, innovation, technology and modernity, Singapore also stands tall. Like Dubai, it also offers luxury real estate such as waterfront properties for sale laced with high-end facilities and amenities. The average capital appreciation in Singapore is 3-4% and average rental returns are 2.3%, significantly lower than that of Dubai.  In addition to that, there is no property tax in Dubai while Singapore imposes a progressive tax, reaching up to 32%. VAT tax in Dubai is 5% and in Singapore is 9%.

Cost of Living: Dubai vs Global Cities

Considering the cost of living, Dubai is 41.4% and 24.8% less expensive than New York City and London respectively. The standard of life that you maintain in London with AED 31,273 can be maintained with AED 24,000 in Dubai, reflecting Dubai’s comparatively cheap or affordable lifestyle. This city not only offers high returns on investment but also appeals to luxury enthusiasts through its affordable yet high-standard lifestyle.

Why Dubai is More Affordable for Expats Than Other Major Cities

Indeed, Dubai is one of the best living and business destinations. Even deemed as a global hub for investment. High-net-worth individuals, professionals, families and entrepreneurs from all over the world come to Dubai mainly because of its offerings, features and investment benefits. In the first place, Dubai does not levy income tax, allowing people to own their entire earrings without any interventions. 

Furthermore. This city extends a range of affordable yet luxury real estate investment opportunities such as waterfront villas for sale and splendid penthouses. Even it allows investors to purchase off-plan properties and luxury real estate through easy installment plans like a 1% payment plan and post-handover payment plan. Additionally, this city is also known for offering a high quality of life at a lower cost because the cost of living in Dubai is also economical as compared to London and New York.

Conclusion: 

Dubai is one of the most attractive real estate investment destinations. It is known for offering luxury real estate at affordable rates, off-plan properties for sale, luxury and futuristic developments and high ROI and capital appreciation. This city offers a significantly high rental yield, remaining somewhere between 6-10%. Given Dubai’s tax advantages, high rental returns, capital appreciation and economical cost of living, it is deemed the most considerable investment destination in the world.

Invest Smart, Live To The Fullest – Get Expert Assistance Today!

Kelt and Co Realty is a prominent real estate agency in Dubai. This property company comes with a wide range of affordable and luxury real estate investment opportunities, catering to the diverse needs and preferences of property investors. No matter whether you are a local or expat, we can find the most viable investment option based on your specific needs, demands and preferences. Contact us to locate the most suitable property and make a profitable investment choice!