The basic argument for investing in Dubai real estate begins and ends with tax: no income tax, no capital gains tax, and no inheritance tax. This is obviously a legitimate factor and one that is highly material. However, it is such a ubiquitous part of the conversation in terms of making a sale that it is often not even thought through.
Another factor that is not as frequently raised is the basic economics of the purchase: what is the actual cost per square foot in Dubai compared with some of the other places on people’s radar as potential places of interest? The places that are on people’s radar as potential places of interest are London, New York, Hong Kong, Singapore, Lisbon, Miami, and Tokyo—the places that compete for the same internationally mobile professionals and families that Dubai is competing for as well.
If one compares the numbers, it is not as simple as saying “Dubai is cheap.” The reality is that prime property in Dubai is not cheap. However, compared with some of these other places around the world, it is a relatively favorable position that is hard to argue with.
It is also necessary to take note of the entities being compared. Note that property markets are not homogeneous. For instance, a price per square foot in New York can represent a broad spectrum of properties based on the borough, neighborhood, as well as buildings. The same can be said for all cities in this listing. We have essentially tried to compare apples to apples as much as possible. We have used mid-market prime residential as opposed to ultra-luxury properties that would skew the figures in our analysis.
It is not our intention to present Dubai in a favorable light. The purpose of this analysis is to assist prospective buyers who are seriously evaluating various cities with an understanding of Dubai’s place in the world in terms of pricing. Note that all prices used in this article will be represented in USD for easier cross-comparison.
Dubai vs London: The Comparison That Comes Up Most
London is the most common reference point for Dubai property conversations. A large proportion of Dubai's international buyer community has a London connection, either they've lived there, they work in industries with strong London ties, or they're comparing Dubai against London as an alternative base.
The headline number is striking. Prime central London residential property is currently trading at between $2,500 and $5,700 per square foot depending on location, covering Mayfair, Knightsbridge, Chelsea, and Kensington. That's three to seven times what you pay for prime Dubai. The gap is real and it's not narrowing.
But the comparison that matters more for most buyers is not prime versus prime. It's mid-market versus mid-market. What does a decent two-bedroom apartment cost in a good area with reasonable transport access in each city?
Here's the mid-market comparison for a 2-bedroom apartment in a good residential area:
- London (Zone 2 to 3, established residential): $880,000 to $1.4M
- Dubai (Business Bay, JBR, Dubai Hills): $410,000 to $820,000
- Gross rental yield London: 3% to 4.5% on residential property in most zones
- Gross rental yield Dubai: 6% to 7.5% in comparable mid-market areas
- Stamp duty in London: up to 12% for residential purchases above $1.9M, plus 2% surcharge for non-UK residents and 3% surcharge for second homes
- DLD transfer fee in Dubai: 4% flat, no residency surcharge, no second-home surcharge
- Annual property tax London: council tax roughly $1,900 to $4,400 per year depending on borough and band
- Annual property tax Dubai: zero
The total cost of acquisition in London, once you factor in stamp duty, legal fees, and survey costs, typically adds 8% to 15% on top of the purchase price. In Dubai, total acquisition costs including the DLD fee, agency fee, and registration run around 6% to 7%. That gap adds up significantly on a $800,000 purchase.
Rental yields tell the starkest part of the story. A landlord in Zone 2 London with a two-bed apartment at $1.1M earning $2,800 per month is yielding around 3.1% gross. Before tax. UK rental income is subject to income tax at the landlord's marginal rate, which for higher earners means 40% or 45% going to HMRC. The effective net yield after tax for a higher-rate taxpayer is closer to 1.5% to 1.8%. In Dubai, that same yield calculation has no income tax deduction. 6.5% gross is 6.5% net. That's a genuinely enormous difference in actual money in your pocket.
Dubai vs New York City: Price Per Square Foot in the Real Numbers
New York is the other major comparison that comes up constantly, particularly for buyers from the US or buyers who've spent time working there.
Manhattan residential property is expensive in a way that can genuinely shock buyers from outside the US. Prime Manhattan is trading at $2,500 to $5,000 per square foot for new development in sought-after buildings. For a 900 square foot apartment in a reasonable Upper East Side or Tribeca building, you're looking at $2.3M to $4.5M. The units are not large by Dubai standards and the price is not small.
Here's the mid-market 2-bedroom comparison:
- New York City (decent Manhattan neighbourhood or prime Brooklyn): $1.5M to $3M
- Dubai (Business Bay, Creek Harbour, Emaar Beachfront): $490,000 to $1.1M
- Gross rental yield NYC: 2.5% to 4% depending on neighbourhood and building type
- Gross rental yield Dubai: 6% to 7.5%
- Property taxes NYC: approximately 0.8% to 1.9% of assessed value per year, which on a $2M apartment translates to $16,000 to $38,000 annually
- Property taxes Dubai: zero
- Mansion tax NYC: 1% to 3.9% additional transfer tax on purchases above $1M
- DLD fee Dubai: 4% flat
The New York carrying cost story is what really differentiates the two markets. Property taxes in New York are not trivial. On a $2M apartment you might pay $25,000 to $35,000 per year in property tax alone, on top of building maintenance fees that in Manhattan co-ops and condos can run $2,000 to $5,000 per month. The total annual cost of owning a property you're not living in, before mortgage costs, can easily exceed 4% to 5% of the asset value. In Dubai, that number is close to zero outside of service charges, which typically run $4,000 to $9,500 per year on a mid-market apartment.
Jonathan Miller, president of Miller Samuel Real Estate Appraisers and a widely cited voice on the New York property market, noted in his 2024 Manhattan Market Report that "effective net yields for residential investors have been compressed to levels that make pure income strategies increasingly difficult to justify in most Manhattan submarkets." That's a polite way of saying the numbers don't work well for yield investors in New York anymore.
Dubai vs Hong Kong and Singapore: Asia's Premium City Comparison
These two sit in their own category. Hong Kong and Singapore are genuinely among the most expensive residential property markets on the planet, not just globally expensive but almost incomprehensibly so when you look at what the price per square foot actually gets you in terms of space.
Hong Kong residential property in core districts like Mid-Levels, the Peak, and Kowloon Tong is trading at $2,500 to $6,400 per square foot. For a 700 square foot apartment in a reasonable Mid-Levels building, you're looking at $1.75M to $4.5M. The units are small and the price is not.
Hong Kong also charges stamp duty at rates that make London's look modest. Non-permanent residents pay 30% stamp duty on residential purchases. That's not a typo. 30%. On a $2M apartment, that's $600,000 in tax before you've bought a single piece of furniture.
Singapore is similarly extreme. Orchard Road, Holland Village, and the central districts trade at $2,200 to $4,100 per square foot for prime residential. The Singapore government introduced Additional Buyer's Stamp Duty for foreigners of 60% in April 2023. Sixty percent. That's the single most agresive foreign buyer deterrent of any major global city and it has meaningfully cooled international investment in Singapore residential property since its introduction.
Here's the comparison on a like-for-like 1-bedroom apartment basis:
- Hong Kong (Mid-Levels, 600 sq ft): $1.5M to $3.8M
- Singapore (Orchard area, 600 sq ft): $1.3M to $3M
- Dubai (Marina or Downtown, 700 sq ft): $300,000 to $545,000
- Gross rental yield Hong Kong: 2% to 3.5%
- Gross rental yield Singapore: 2.5% to 3.8%
- Gross rental yield Dubai: 5.5% to 7.5%
The stamp duty gap alone would make Dubai look attractive even if everything else were equal. It isn't equal. The price per square foot comparison adds another layer and the yield comparison adds a third. For Asian investors who've historically defaulted to Hong Kong or Singapore for regional property investment, Dubai has become a genuinely credible alternative, particularly since Hong Kong's political environment shifted post-2020 and Singapore closed the door on foreign investors with the 60% ABSD.
Faisal Durrani of Knight Frank noted in the Knight Frank 2025 Wealth Report that Dubai had seen a significant increase in buyer enquiries from Hong Kong and Singapore in 2023 and 2024, describing it as "a structural shift rather than a cyclical one" driven by both price differentials and policy changes in both Asian cities.
Dubai vs Lisbon and Miami: The Lifestyle City Comparison
These two are worth grouping together because they attract a similar buyer profile. People who are choosing a city partly or primarily for lifestyle reasons, and who are comparing total cost of living and owning alongside pure investment returns.
Lisbon became one of Europe's hottest property markets between 2015 and 2022, driven by the Non-Habitual Resident tax regime, the Golden Visa programme, and genuine lifestyle appeal. Since then, the Portuguese government has made changes to both programmes and property prices in Lisbon have softened somewhat from their peak, though they remain well above where they were a decade ago.
Prime Lisbon (Chiado, Príncipe Real, Estrela) is currently trading at $650 to $1,300 per square foot. That's lower than mid-market Dubai on a per-square-foot basis, which surprises some buyers. But Lisbon apartments tend to be smaller, older buildings, and the yield story has deteriorated as prices rose. Short-term rentals via Airbnb were restricted in central Lisbon in 2023, which removed one of the primary yield drivers for investor buyers. Long-term rental yields in prime Lisbon now run around 3% to 4.5%.
Miami has had its own extraordinary price run since 2020, driven partly by domestic US migration from high-tax northeastern states and partly by international buyers from Latin America and Europe. Miami Beach and Brickell prime product is now trading at $1,500 to $3,500 per square foot. That's materially higher than comparable Dubai and the yield picture is similar to other US cities. Property taxes in Florida are relatively low by US standards but not zero, and HOA fees in Miami's premium buildings can run $2,000 to $6,000 per month.
Here's the mid-market 2-bedroom comparison for both cities:
- Lisbon (Chiado or Príncipe Real, 90 sqm): $740,000 to $1.2M
- Miami (Brickell or Edgewater, 1,000 sq ft): $700,000 to $1.4M
- Dubai (Business Bay or Dubai Marina, comparable size): $410,000 to $820,000
- Gross rental yield Lisbon: 3% to 4.5%
- Gross rental yield Miami: 3.5% to 5%
- Gross rental yield Dubai: 6% to 7.5%
Dubai vs Tokyo: The Underrated Comparison
Tokyo doesn't come up as often in this conversation as it should. The city is genuinely interesting for property investors and the comparison with Dubai is illuminating in ways that cut both directions.
Tokyo is surprisingly affordable relative to its status as one of the world's great megacities. Central Tokyo neighbourhoods like Minato, Shibuya, and Shinjuku trade at $700 to $1,800 per square foot for mid-market residential. Prime new-build product in the best locations goes higher, up to $3,500 per square foot, but the mid-market is broadly comparable to mid-market Dubai and in some cases cheaper.
Where Tokyo differentiates is on yield and depreciation. Japanese property yields run 3.5% to 5.5% depending on location and property type, which is lower than Dubai but not disastrously so. The real issue for long-hold investors is that Japanese buildings depreciate in book value over time in a way that Western and Middle Eastern property markets don't apply in the same way. A 30-year-old building in Tokyo is worth consideribly less than an equivalent new build, whereas in Dubai older buildings in strong locations generally hold or appreciate in value.
The Tokyo comparison is also shaped by the yen's weakness against the dollar over the last two years, which has made Tokyo cheaper for dollar-denominated buyers than the local price numbers suggest. A buyer purchasing in dollars today is getting more Tokyo real estate per dollar than they would have in 2021. Whether that represents opportunty or currency risk depends on your view of the yen's trajectory.
Here's the mid-market 1-bedroom comparison for Tokyo:
- Tokyo (Minato or Shibuya, 500 sq ft): $500,000 to $900,000
- Dubai (Business Bay or JVC, comparable size): $190,000 to $380,000
- Gross rental yield Tokyo: 3.5% to 5.5%
- Gross rental yield Dubai: 6.5% to 8.5%
Our Original Research: Total Cost of Owning a $1M Apartment Across All Seven Cities
We modelled the total five-year cost of owning a comparable apartment across all seven cities. The model assumes a cash purchase at $1M for comparability, a five-year hold, and a long-term rental strategy throughout. This is our own analysis.
Acquisition cost as percentage of $1M purchase price:
- Dubai: 4% to 7% total (DLD fee plus agency), $40,000 to $70,000
- London: 8% to 15% (stamp duty plus legal, survey, agency), $80,000 to $150,000
- New York: 3% to 6% (mansion tax, attorney fees, transfer tax), $30,000 to $60,000
- Hong Kong: 4.25% to 34% depending on residency status, $42,500 to $340,000
- Singapore: 4% to 65% depending on residency and ABSD rate, $40,000 to $650,000
- Lisbon: 6% to 9% (IMT transfer tax plus notary and registry), $60,000 to $90,000
- Miami: 2% to 4% (relatively low acquisition costs), $20,000 to $40,000
- Tokyo: 4% to 7% (registration taxes and agent fees), $40,000 to $70,000
Annual holding costs as percentage of $1M purchase price:
- Dubai: service charge only, approximately $4,000 to $9,500 per year, no property tax
- London: council tax plus building charges approximately $6,000 to $14,000, plus income tax on rental income
- New York: property tax plus HOA approximately $23,000 to $49,000 per year
- Hong Kong: rates and management fees approximately $15,000 to $25,000 per year
- Singapore: property tax plus management fees approximately $40,000 to $160,000 per year depending on ABSD status
- Lisbon: IMI property tax plus condominium charges approximately $5,000 to $10,000 per year
- Miami: property tax plus HOA approximately $20,000 to $45,000 per year
- Tokyo: fixed asset tax plus management fees approximately $8,000 to $16,000 per year
Five-year gross rental income at respective yield averages on a $1M purchase:
- Dubai at 7%: $350,000 gross, zero income tax
- London at 3.5%: $175,000 gross, minus 40% to 45% income tax for higher-rate non-residents
- New York at 3%: $150,000 gross, minus US federal and state rental income tax
- Hong Kong at 2.5%: $125,000 gross
- Singapore at 3%: $150,000 gross
- Lisbon at 4%: $200,000 gross
- Miami at 4%: $200,000 gross, minus US federal tax
- Tokyo at 4.5%: $225,000 gross
Our Take: What the Comparison Actually Means for Buyers in 2026
The data all point to the same conclusion. Dubai is not the least expensive market represented on this particular list when one takes into account the less expensive markets that are represented. In fact, Dubai’s mid-market prime property now aligns in terms of price per square foot with Tokyo and lower Lisbon and significantly underperforms London, New York, Hong Kong, Singapore, and Miami.
The real benefit that Dubai has is that it is the only market on this particular list that can offer a net yield that is unmatched anywhere else in the world, and that is because Dubai is the only market on this particular list that does not have to deal with taxation on rents at all.
A rather unvarnished truth that must be acknowledged is that while Dubai has had outstanding capital appreciation in recent years, there is no reason to believe that this will continue to be the case in the coming years. In fact, Dubai does not have the same two hundred-year track record that London and New York do as a store of wealth and a safe haven in times of economic uncertainty. Those markets have proven themselves time and time again to withstand whatever the world economy can throw at them, and Dubai is still in the process of proving itself.
However, to buyers in 2026 who are seriously considering their options, Dubai’s proposition has never been more difficult to dismiss than it is at this particular time.
We have current listings across Dubai at every price point if you want to see what the numbers look like for specific properties. And if you want to talk through how Dubai fits into a broader international portfolio, our team is happy to have that conversation.
