Comparison of Real Estate Prices in Dubai with Other Global Megacities: Is It Profitable to Buy an Apartment in the City of the Future?
Real estate prices in Dubai may seem high to many, but in reality, if compared with other megacities, it turns out that purchasing an apartment or villa in this city is a profitable investment. You just need to choose the right district and take possible risks into account.

What is the overall situation in Dubai's real estate market – is demand high?
Investor and buyer interest from around the world in Dubai's real estate market has remained high in recent years. We will review pricing policies and perform a comparison with Hong Kong, Singapore, Moscow, London, and New York.
Over the last two decades, Dubai’s real estate market has transformed from a desert to one of the most dynamically developing in the world. Especially rapid growth has been observed since 2021 — amid global economic changes, low taxes, and a lenient visa policy, the emirate has become a true magnet for investors, expatriates, and digital nomads. In 2023, transaction volumes reached record levels, and housing prices in key city districts continue to grow at double-digit rates. The government is actively developing infrastructure, stimulating foreign investments, and creating comfortable conditions for living and business.
Interest in Dubai real estate is growing rapidly not only among regional buyers but also among investors from Europe, Asia, the CIS, and America. Against the backdrop of high inflation in traditional megacities, strict regulation, and rising taxes, more and more people are considering Dubai as a more profitable alternative for purchasing housing or investments. Flexible conditions for foreigners, transaction transparency, the absence of income tax, and high growth potential of property value make this market especially relevant for global investors in 2024–2025.
Methodology of Comparison
The comparison of real estate prices in Dubai with other megacities will be conducted using several parameters, such as:
Cost per square meter;
Taxes;
Rent;
Yield;
Legal aspects.
The data sources will include Knight Frank, Numbeo, and local real estate agencies. The comparison will be made for the years 2024–2025.
Dubai: Real Estate Market Overview – What is Offered to Buyers
According to the analytical report by Knight Frank and Bayut for 2024, average housing prices in Dubai increased by 16–18% compared to 2023. The average price per square meter in key districts is:
Downtown Dubai — $7,500–$10,000 per m²
Dubai Marina — $4,500–$7,000 per m²
Palm Jumeirah — $8,000–$12,000 per m²
Jumeirah Village Circle (JVC) — $2,800–$3,500 per m²
Business Bay — $4,500–$6,000 per m²
Price Growth Chart 2020–2024 (Description):
2020 (COVID-19 downturn): moderate decline of 5–7%
2021: growth of 8–10%
2022: growth of 12–14%
2023: +17%
2024: +16% (forecast for the full year)
Rental Yield (Return on Investment)
According to Property Finder, average rental yield by district in 2024:
District | ROI (Annual Yield) |
Jumeirah Village Circle (JVC) | 7.9% |
Dubai Marina | 7.1% |
Downtown Dubai | 5.4% |
Palm Jumeirah | 4.8% |
Business Bay | 6.5% |
JVC and Dubai Marina lead in yield due to high demand and moderate purchase prices. In premium districts, ROI is lower because of high entry costs but more stable in the long term.
Note: In the first half of 2024, the total number of housing transactions in Dubai exceeded 68,000 — which is 30% more than the same period in 2023. Forty-one percent of all transactions were made by foreign investors, including citizens from India, Russia, the United Kingdom, Germany, and China.
The cost of apartments in Dubai is quite reasonable, considering the advantages of the local market.
Hong Kong
The Hong Kong real estate market remains one of the most expensive in the world. Such purchases are affordable only for very wealthy individuals. According to 2024 data, the average property price in Hong Kong is about HK$170,000–250,000 per m² (approximately $22,000–32,000 per m²), depending on the district. Even in residential neighborhoods, prices rarely fall below $15,000 per m².
Hong Kong is characterized by:
Severe shortage of land for development;
High population density;
Dominance of small-sized apartments (“nano housing” under 30 m²);
Extremely high purchase cost relative to property size.
Prices remain high even during economic fluctuations, largely due to limited supply and demand from wealthy mainland Chinese buyers.
Restrictions for Foreigners
Foreigners are allowed to buy property in Hong Kong, but they must pay an additional tax (Buyer’s Stamp Duty) of 15% of the property value. Standard Stamp Duty, which depends on the transaction price, is also charged (up to 4.25%).
In total, a foreign buyer can pay up to 20% in taxes when purchasing. There is no ownership of land — all property is leasehold, usually for terms of 50–99 years.
High Taxes and Low Yield
Investment in Hong Kong real estate has become less attractive in recent years in terms of yield:
Average rental ROI is only 2–3%.
High taxes on purchase and maintenance (including rental income tax of 15% or more).
Price growth has slowed, and some segments are experiencing corrections.
Many investors have switched to alternative Asian markets — such as Dubai, Bangkok, Kuala Lumpur, and Jakarta.
Housing Affordability Problem
According to Demographia and UBS Global Real Estate Bubble Index, Hong Kong regularly ranks first in housing unaffordability:
The price-to-income ratio exceeds 20–25.
Most of the middle class cannot afford housing even in new districts.
Housing shortage leads to growth of “cage homes” (3–5 m² cells) and quality of life issues.
Real Estate Market Comparison: Hong Kong vs. Dubai (2024–2025)
Parameter | Hong Kong | Dubai |
Average price per m² | $22,000–32,000 | $3,000–7,000 |
Ownership type | Leasehold | Freehold |
Purchase taxes for foreigners | Up to 20% (including 15% Buyer’s Stamp Duty) | About 4% registration fee |
Annual rental yield (ROI) | 2–3% | 6–8% |
Rental income tax | Yes (~15%) | No |
Restrictions for foreigners | Additional taxes, but purchase allowed | Practically none |
Minimum apartment price | From $800,000 (even in residential areas) | From $200,000–300,000 in new areas |
Housing affordability | Extremely low | Moderate, especially in new areas |
Current market trends | Overheated market, stagnation | Growth + high investor activity |
Prestige and status | Very high, but overheated market | Rapidly growing international hub |
Hong Kong remains a symbol of financial success but has one of the most expensive and least affordable real estate markets. Meanwhile, Dubai offers much more favorable conditions for both living and investing: lower prices, no taxes, high rental yields, and straightforward procedures for foreigners.
Singapore
Singapore’s real estate market is considered one of the most stable in Asia due to strict government regulation, a high standard of living, and limited land supply.
The government actively manages demand and supply through tax and credit policies, which helps avoid bubbles and sharp declines.
Property prices in Singapore have increased by about 35% over the last 10 years, despite periodic adjustments.
The average housing cost in this megacity in 2024 is $15,000–20,000 per m² in central areas and around $10,000–12,000 per m² in the suburbs.
An apartment in new developments can cost from $800,000 to $2 million and above, especially in Orchard, Marina Bay, and Holland Village.
Restrictions for Foreigners:
Foreigners cannot purchase houses and land without special permission.
Purchases are mainly possible in private condominiums.
They must pay an additional tax (Additional Buyer’s Stamp Duty, ABSD) of 60% of the property value (after a hike in 2023).
Taxes on Purchase and Sale:
Stamp Duty (BSD) – 3–4% (depending on value)
Additional Buyer’s Stamp Duty (ABSD) – 60% (for foreigners)
No sales tax, but capital gains tax may apply if the sale is deemed commercial activity
Due to high tax rates and restrictions, Singapore’s market is oriented more toward long-term residence and capital preservation rather than high-yield investments.
Singapore vs. Dubai (Real Estate 2024–2025)
Parameter | Singapore | Dubai |
Average price per m² | $10,000–20,000 | $3,000–7,000 |
Accessibility for foreigners | Limited, no houses, condos allowed | Open market (Freehold areas) |
Additional taxes for foreigners | 60% ABSD + ~3–4% BSD | ~4% registration fee |
Annual yield (ROI) | 2–3% | 6–8% |
Rental income tax | Potentially taxable | None |
Purchase purpose | Capital preservation, residence | Income investment, residence, residence permit |
Transaction speed | Medium (1–2 months) | Fast (1–3 weeks) |
Government regulation | Very strict | Flexible, investor-friendly |
Singapore is a prestigious and stable market but not very suitable for short-term investments. Dubai offers significantly better conditions for income and capital growth.
Moscow: Real Estate Market Overview
Compared to global megacities, Moscow offers relatively affordable real estate, although prices vary by district and property type. Average real estate prices in Moscow in 2024:
$2,000–3,500 per m² in the mass segment.
$4,500–6,500 per m² in elite areas (Central Administrative Okrug, Khamovniki, Arbat).
Apartment prices in residential districts may start from $100,000–150,000.
Despite ruble devaluation, the market retains interest from local buyers due to subsidies, mortgage programs, and shifting demand inward. However, Moscow's market has limited appeal to foreign investors because of:
Sanctions and capital transfer restrictions;
Legal uncertainty and lack of transparency;
Lack of property ownership guarantees amid political tensions.
Effectively, the market has become domestic with episodic foreign participation.
Key risks of investing in Moscow real estate:
Currency fluctuations: the ruble is highly volatile.
Sanctions and geopolitics affect capital markets, development, and buyer activity.
Inflation and limited access to Western financial products reduce investment appeal.
Despite this, the market remains stable locally — demand is supported by Russian housing needs and investments in "bricks."
Moscow vs. Dubai (Real Estate 2024–2025)
Parameter | Moscow | Dubai |
Average price per m² | $2,000–3,500 (average) | $3,000–7,000 |
Accessibility for foreigners | Legally allowed but practically limited | Full purchase freedom for foreigners |
Purchase/ownership taxes | Low, but property tax exists | No property or income tax |
Rental yield (ROI) | 3–5% (in rubles) | 6–8% (in dollars) |
Political risks | High | Low |
Currency risks | High ruble volatility | Dollar-pegged |
Investment stability | Low | High |
International liquidity | Limited | High |
Moscow remains an inexpensive but risky investment market. Dubai wins in yield, currency protection, transparency, and ease of ownership.
London
One of the most expensive markets in Europe, London has high taxes, especially on luxury real estate. It remains prestigious and expensive, with stable demand from local and international investors (Middle East, Asia, CIS, USA). Real estate prices have steadily grown over the past 10 years but stabilized since 2022 with moderate annual growth of 2–5%.
Average prices in London (2024):
$12,000–18,000 per m² in central districts (Kensington, Mayfair, Chelsea);
$7,000–10,000 per m² in zones 2–3;
Apartments in the center start at $1 million, suburbs from $500,000.
Taxes when buying:
Stamp Duty Land Tax (SDLT) up to 12% of the price;
Additional 2% for foreign buyers;
Rental income tax: progressive 20–45%;
Capital Gains Tax (CGT): up to 28% on sale.
Foreigners can buy without restrictions but face:
Financial checks (AML/KYC);
Additional taxes and costs;
Mortgages available but with strict terms.
Yield and risks:
Average ROI: 3–4% (often less after taxes);
High stability but low yield;
Sensitive to interest rates, Brexit consequences, and tax reforms.
London is a capital protection asset, suitable for large investors focused on long-term stability.
London vs. Dubai (Real Estate 2024–2025)
Parameter | London | Dubai |
Average price per m² | $10,000–18,000 | $3,000–7,000 |
Purchase taxes | Up to 14% (12% SDLT + 2% foreigner) | ~4% registration fee |
Rental income tax | Up to 45% | 0% |
Capital gains tax | Up to 28% | 0% |
Yield (ROI) | 3–4% | 6–8% |
Registration & transactions | Slow, legally complex | Fast and transparent |
Foreign restrictions | None | None |
Liquidity | High, especially premium | High, growing |
Political/regulatory risks | Moderate (increasing regulation) | Low |
London is prestige and stability but with high taxes and low yield. Dubai is a better choice for active investors.
New York
One of the largest global markets. NYC attracts investors as a financial hub. The luxury segment remains strong but the market has been unstable due to COVID, population outflow, rising taxes, and maintenance costs.
Prices and features:
$10,000–20,000 per m² in central areas (Manhattan, Tribeca, SoHo);
$6,000–9,000 per m² in Brooklyn, Queens;
Manhattan apartments start at $1.2–1.5 million.
Key points:
Division into co-ops and condos;
Co-ops often restrict rentals and require board approval.
Taxes and costs:
Property tax: 1–2.2% annually;
Capital Gains Tax: up to 23.8%;
Rental income tax up to 37% (federal + state);
Closing costs 4–6%.
Foreigners can buy but face:
Additional checks;
Limited mortgage access;
Complex ownership structures (often LLCs or trusts).
Yield and liquidity:
ROI 2–4% (lower after taxes and costs);
Stable rental demand but decreasing margins;
High liquidity but high entry barriers.
New York is prestigious but complex, suitable for conservative dollar-based investments with legal support.
New York vs. Dubai (Real Estate 2024–2025)
Parameter | New York | Dubai |
Average price per m² | $10,000–20,000 | $3,000–7,000 |
Closing costs | 4–6% | ~4% |
Rental taxes | Up to 37% | 0% |
Property tax (annual) | 1–2.2% | 0% |
Yield (ROI) | 2–4% | 6–8% |
Foreign ownership | Possible but legally complex | Simple and open |
Minimum entry price | From $1.2 million in Manhattan | From $200–300k |
Liquidity | Very high, especially premium | High and growing |
Legal barriers | High (LLC, taxes, compliance) | Low |
New York is a global prestige market but expensive and complex. Dubai offers flexibility, income, and ease of transactions.
Comparative Table of Real Estate Markets in the Mentioned Megacities
Parameter | Dubai | Hong Kong | Singapore | Moscow | London | New York |
Average price per m² (USD) | $3,000–7,000 | $22,000–32,000 | $10,000–20,000 | $2,000–3,500 | $10,000–18,000 | $10,000–20,000 |
Ownership type | Freehold | Leasehold | Leasehold | Freehold | Freehold | Freehold/Co-op/Condo |
Purchase taxes | ~4% registration | Up to 20% (incl. Buyer's Stamp Duty) | 3–4% BSD + 60% ABSD foreigners | Low (registration, VAT) | Up to 14% (SDLT + extra tax) | 4–6% closing costs |
Rental income tax | 0% | ~15% | Possible | 13–15% | Up to 45% | Up to 37% |
Capital gains tax | 0% | Yes | Yes | Yes | Up to 28% | Up to 23.8% |
Rental yield (ROI) | 6–8% | 2–3% | 2–3% | 3–5% | 3–4% | 2–4% |
Foreigner accessibility | Very high | Limited | Very limited | Legally allowed, limited | Full | Full |
Minimum entry price | From $200–300k | From $800k | From $800k | From $100k | From $500k | From $1.2M |
Market liquidity | High | High but segmented | Very high | Medium | Very high | Very high |
Political/currency risks | Low | Low | Low | High (currency, sanctions) | Moderate | Moderate |
Transaction speed | Fast (1–3 weeks) | Slow (1–2 months) | Medium (1–2 months) | Medium (1–2 months) | Slow (2–3 months) | Slow (2–3 months) |
Conclusions
Dubai leads in yield and accessibility for foreign investors, with simple transactions and minimal taxes.
Hong Kong is the most expensive but offers low yields and complex restrictions.
Singapore is a stable, protected market but with high taxes and foreigner restrictions.
Moscow is relatively affordable but volatile and politically risky.
London and New York are premium markets with high liquidity but also high taxes, costs, and complex deals.
Recommendations
Dubai has diverse districts with different characters and price points. It is important to consider the purchase purpose: living, rental, or resale.
Downtown Dubai – city center near Burj Khalifa and Dubai Mall. Good for living and stable rental income. Prices are above average but liquidity is high.
Dubai Marina – modern waterfront area with developed infrastructure, popular among expats and renters. Offers dynamic growth and good yield.
Palm Jumeirah – prestigious island with villas and apartments for those seeking status and comfort. Investments are more expensive but attract premium buyers.
Jumeirah Village Circle (JVC) and Dubai Hills Estate – more affordable areas good for primary property purchase with growth potential.
Advice: Study district infrastructure, transport, development plans, and rental demand before buying. Work only with licensed, reputable agencies and lawyers experienced in Dubai.
Ensure the agency holds a RERA (Real Estate Regulatory Agency) license — a guarantee of honesty and professionalism.
Always sign contracts with agents and lawyers to avoid fraud and disputes.
Use legal services to verify property documents, developer status, and contract terms.
Dubai often offers developer installment plans convenient for off-plan purchases.
Foreigners can get mortgages but terms may differ from locals.
Account for additional costs: registration fees (~4%), agent commissions, utilities, insurance.
Always conduct personal property inspections and check legal cleanliness — permits, debts, and restrictions. Monitor delivery timelines if buying off-plan.
Calculate real rental yield considering all expenses and vacancies. Be prepared for currency fluctuations and regulatory changes.
Investing in Dubai real estate is mostly profitable if you carefully calculate and select the right property.