Comparing Dubai Real Estate vs. Other Global Cities

Dubai continues to stand out as a top destination for real estate investment, but how does it compare to other global cities like London, New York, and key locations in Europe and India? Here’s a concise comparison to help you make an informed decision.

Dubai: High Returns and Promising Growth

Dubai offers one of the highest rental yields globally, with averages between 6%-10% and the world’s lowest property-related expenses, amounting to less than 10% of the purchase price.

The city’s real estate market has shown strong growth. The average property price in Dubai is relatively affordable at AED 1.3 million (around £275,000), making it an attractive option for both seasoned investors and newcomers.

London: Long-Term Growth

Rental yields in London are lower, averaging around 3%-4.5%, but the market is known for long-term appreciation. London’s property prices are significantly higher, with the average home costing around £500,000.

New York: High Demand, High Entry Costs

New York’s real estate market is characterised by high demand and high property prices. The average rental yield is similar to London’s, around 3%-5.3%, but the entry cost is much higher, with average property prices exceeding $700,000.

Europe: Diverse Opportunities

Across Europe, rental yields vary significantly. Cities like Berlin and Lisbon offer yields, ranging from 3-4%, while more established markets like Paris and Munich see yields closer to 2%-5%. Property prices are also diverse depending on your risk appetite and investment strategy.

India: Growing Market

India's major cities, like Mumbai and Delhi, provide yields between 2%-4%, though emerging markets like Bengaluru can offer slightly higher returns of up to 4%-5%. Property prices are significantly higher in comparison.

Dubai shines in the global real estate market with its high rental yields, lower entry costs, and promising growth potential. Despite a 10% price increase in early 2024, Dubai remains more affordable than top-tier markets.

It provides stronger returns, outpacing yields in London (3% to 4.5%), New York (3% to 5.3%), and Singapore (2.5%), making it an excellent choice.

Unlike major markets, which come with higher prices and lower returns, Dubai offers superior value for money. Investors can acquire larger, more luxurious properties at a fraction of the cost compared to these cities.

By understanding these key differences, investors can better align their portfolios with their financial objectives, ensuring a well-rounded and strategic approach to global real estate investment.

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