Dubai vs. Other Global Cities: Why Dubai’s Real Estate Market Stands Out

Dubai has emerged as one of the world’s most dynamic real estate markets, attracting investors, high-net-worth individuals, and expatriates from across the globe. But how does it compare to other major cities like New York, London, Hong Kong, or Singapore? In this article, we explore the unique factors that make Dubai’s real estate market stand out and why it continues to be a prime investment destination in 2025 and beyond.

1. Tax-Free Property Ownership

One of the biggest advantages of investing in Dubai real estate is the zero property tax policy. Unlike cities such as New York (property tax: ~1.7%), London (~1-3%), or Singapore (~4-16%), Dubai does not impose annual property taxes, making it an attractive option for investors looking to maximize their rental yield and capital appreciation.

2. High Rental Yields & ROI

Dubai offers some of the highest rental yields globally, averaging 6-9%, compared to:

• London: 2-4%
• New York: 3-5%
• Hong Kong: 2-3%
• Singapore: 3-4%

The combination of no property taxes and high rental yields makes Dubai a lucrative destination for buy-to-let investors.

3. Freehold Ownership for Foreign Investors

Unlike some global markets where foreign ownership is restricted, Dubai offers freehold ownership in designated areas, allowing international investors to fully own property with no limitations. In contrast:

• Hong Kong has restrictions on foreign property ownership.
• Singapore imposes higher stamp duties on foreign buyers.
• London and New York have increasing foreign ownership taxes.

4. Affordable Luxury Compared to Other Metropolises

Dubai provides luxury living at more affordable prices than its global counterparts. The average price per square meter in prime areas:

• Dubai: $6,000 – $12,000
• London: $20,000 – $35,000
• New York: $18,000 – $30,000
• Hong Kong: $25,000 – $40,000

Investors and homebuyers get larger, high-end properties with premium amenities at a fraction of the cost compared to these cities.

5. Business-Friendly Environment & Golden Visa Program

Dubai’s pro-investment policies, low corporate tax (9%), and 100% foreign business ownership make it a global financial hub. The Golden Visa program further boosts real estate demand by offering long-term residency (5-10 years) to property investors who meet the minimum threshold of AED 2 million (~$545,000).

6. World-Class Infrastructure & Smart City Initiatives

Dubai is known for its state-of-the-art infrastructure, including:

• The world’s busiest international airport
• Futuristic public transport and smart city projects
• Ultra-modern skyscrapers and luxury waterfront developments

This positions Dubai as a forward-thinking city that continuously adapts to global real estate trends.

7. Safe & Stable Economy

Dubai offers political stability, economic growth, and a secure environment, attracting expatriates and investors alike. Unlike global cities that face political uncertainty or economic downturns, Dubai’s government has implemented strategic policies that ensure continuous real estate sector growth.

8. Booming Tourism & Short-Term Rental Market

With over 17 million tourists annually and global events like EXPO 2020 and COP28, Dubai’s short-term rental market is thriving. Platforms like Airbnb and Nexus Living Holiday Homes allow investors to maximize rental income through short-term leasing.

Conclusion

Dubai’s real estate market outshines other global cities with tax-free benefits, high rental yields, freehold ownership, affordable luxury, and a business-friendly environment. Whether you’re an investor, homeowner, or expatriate, Dubai continues to be one of the best places to buy property and secure long-term financial gains.