WHY IS DUBAI THE CROWN JEWEL OF GLOBAL LUXURY REAL ESTATE?

Most of the time, when people think about luxury real estate, they tend to imagine properties in a Western country, either urban or coastal. Global hotspots such as New York, Singapore, Hong Kong, and London are often at the top of that list. But did you know there’s another market with massive demand, offering luxury properties at a better price than any of the aforementioned locations?

Dubai has secured its place as a global real estate hub, attracting a growing number of international investors every year. There are multiple reasons why investors, professionals, and homebuyers are drawn to Dubai. Scroll down to explore the key factors driving this demand.

Price Per Square Foot

Dubai: $404 per square foot.​ (Property Monitor)

Singapore: $1,808 per square foot. ​(Smart Wealth SG)

London: $860 per square foot.​ (Property Market Intel)

New York: $814 per square foot.​ (Realtor)

Hong Kong: $2,000 per square foot.​ (Mansion Global)

This data indicates that luxury properties in Dubai are significantly more affordable, with prices per square foot being substantially lower than those in Singapore, London, New York, and Hong Kong.​ 

Morgan Owen, the Managing Director at Anarock Middle East & North Africa said: “Dubai continues to remain a magnet for investors and is one of the most affordable luxury destinations in the world in comparison to many of its counterparts, including Hong Kong and Singapore, etc,”

Rental Yields

Offering competitive rental yields for property owners, Dubai has become a worldwide sensation for property investments. With more and more people moving to Dubai in search of a high standard of living, the city is the perfect place for both capital appreciation and rental yield growth.

Dubai: 6-8% on average.​ (Property Monitor)

Singapore: 5.31% on average. ​(Iowa Properties)

London: 4-5% on average.​ (Statista)

New York: 6% on average.​ (Global Property Guide)

Hong Kong: 3.46% on average.​ (scmp)

Tax Environments

Dubai: No property tax, no capital gains tax, and no income tax

Singapore: Certain property taxes and capital gains taxes including stamp taxes. ​(Crowe)

London: Up to 25% capital gains tax & a 3% stamp duty surcharge for foreign investors.​ (Farrer)

New York: 1.54% Property tax.​ (States)

Hong Kong: 15% Property tax, Capital gains tax.​ (Tax Summaries)

As seen above, Dubai outperforms these global hotspots for luxury real estate. With incredible economic benefits and various factors contributing to a high-quality lifestyle, more and more people are drawn to investing in Dubai.  

If you are an investor, business owner, professional, or someone looking to buy property in Dubai, we can offer you the best deals to secure your investment in this highly competitive market.