Dubai real estate investments outperform London and New York markets as price rises, investor-friendly policies and future-proof market lure home-buyers and speculators.
With an average sale price of just $438 per square foot, Dubai presents incredible value compared to London and New York.
Despite its reputation for luxury and world-class amenities, Dubai’s property market remains accessible to a broader spectrum of buyers. Investors can enter a market that offers lavish lifestyles and state-of-the-art developments at a fraction of the cost of global counterparts.
Dubai real estate outperforms London and New York
Dubai offers gross investment yields of 7 per cent, the highest among the three cities. This is nearly double New York’s yield of 4.2 per cent and almost triple London’s modest 2.4 per cent.
For investors seeking both consistent rental income and capital appreciation, Dubai’s real estate market provides an unparalleled opportunity.
Year-on-year inflation-adjusted property price growth in Dubai has surged by 16.5 per cent, reflecting a strong and dynamic market fuelled by high demand and constrained supply in premium locations.
In stark contrast, New York grew 8.1 per cent, while London lagged at just 1.6 per cent.
Louis Harding, Managing Director at Betterhomes, commented: “This milestone highlights Dubai’s remarkable appeal as a place to live and work. While growth is never entirely linear, I expect the market to remain strong as the population rises, the city matures, and the 2040 Urban Master Plan unfolds.”
“When comparing these figures to other global cities, Dubai continues to deliver exceptional value, especially when paired with the unparalleled quality of life it offers. For instance, despite its rapid growth, Dubai remains significantly more affordable than cities like London, New York, or Singapore, where average prices far exceed AED 2,500 per square foot,” he added.
Dubai’s appeal extends beyond affordability and yields. The city’s government has created a pro-investor ecosystem through initiatives such as visa reforms, zero property taxes, and its ambitious Dubai Economic Agenda D33.
These measures have drawn global attention and bolstered the city’s reputation as a hub for businesses, expatriates, and high-net-worth individuals.
Dubai stands out for its lifestyle offerings, blending safety, connectivity, and modern infrastructure. The city’s position as a global travel hub, coupled with its family-friendly environment and favourable climate, makes it a top choice for residents and investors alike.
London and New York, while iconic, are weighed down by high costs of living, congestion, and challenging climates.
One of Dubai’s standout features is its proactive governance. Amid global uncertainty, Dubai has maintained investor confidence through stability and forward-looking policies.
Unlike London, which continues to navigate post-Brexit challenges, or New York, which faces affordability crises, Dubai’s real estate market remains future-proof.
The city is seeing rising demand fuelled by mega infrastructure projects, a growing expatriate population, and its diversification into new economic sectors.
Dubai’s real estate market is not just thriving today, it’s built for long-term growth. The city’s leadership, combined with increasing demand from international investors, ensures sustained momentum even as the global real estate market fluctuates.
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