How Dubai Compares to London, New York, and Singapore

I’ll be blunt at the start because that’s what investors want: Dubai usually gives you more income for each dollar (or dirham) you put in. Higher rental yields, lower entry prices, zero tax on rental income or capital gains, and—this is unusual—a property-led residency route. Yes, London and New York are icons; Singapore is rock-solid and governed with precision. But the math, more often than not, tilts toward Dubai. Perhaps I’m biased after too many mornings comparing spreadsheets with coffee gone cold—but numbers do have a way of insisting on themselves.

If you’re weighing a unit in Downtown Dubai against a pied-à-terre in Marylebone, a condo in Midtown Manhattan, or a compact two-bed in Tanjong Pagar, here’s the practical, slightly imperfect, human take you asked for—some pros, some caveats, and a few tangents where the market reality doesn’t line up neatly.

Key Advantages of Dubai (In Plain English)

1) Higher Rental Yields (More Income, Usually Less Drama)

Data Context: Dubai's gross yields commonly sit in the mid-to-high single digits—often 6% to 9% depending on area, finish, and operator. Third-party comparisons frequently peg Dubai around ~7% on average, versus ~2.4% in London and ~4.2% in New York in like-for-like snapshots. Singapore typically settles closer to ~3.0%–3.5%.

Reality check: yields shift with cycle, building, and micro-location. But if you’re scanning global hubs right now, Dubai sits at the top end of mainstream, investable yields.

2) Lower Entry Prices (Price per Square Foot That Feels…humane)

Entry pricing in Dubai is still materially lower than prime London or Manhattan—so the same capital buys you more space or a newer spec. That alone helps yield math. (We’ll table out rough comps below.)

3) Tax Benefits (The Line Item That Tilts the IRR)

No personal income tax on rents, no capital gains tax on exit, no annual property tax. You’ll have purchase fees (DLD transfer), service charges, and sensible running costs, but the headline tax burden on rental income is effectively 0% for individuals.

4) Residency by Investment (A Non-Financial Perk With Real Options)

Buy AED 2 million+ in property and you can qualify for a multi-year 10-year Golden Visa (renewable) under the investor route—spouse, children, and parents can be sponsored, even if there’s a mortgage (with required minimum paid). That’s unique among global hubs in how straightforward it is.

5) Affordable Luxury (Yes, It’s a Cliché—But True)

Brand-new towers, big amenity stacks, valet parking, and marinas… at price points that, frankly, would be hard to replicate in Knightsbridge or Tribeca. You’re paying less for a similar (sometimes higher) level of finish.

6) Market Growth Drivers (Population + Infrastructure + Policy)

Dubai’s population growth, pro-business policy mix, and large-scale infrastructure (airports, logistics, tourism) underwrite demand—and, in good cycles, capital appreciation. When rents run hot (they have), owners feel it. Tenants, less so. (The Financial Times recently highlighted the squeeze on Dubai renters—useful context for buy-to-let assumptions.)

Quick Reality Contrast: London, New York, Singapore

• London remains a prestige store of value with deep, liquid markets and rule-of-law comfort. But yields in central postcodes tend to be 2.5%–4.5%, and taxes/regs have tightened. Recent research notes higher yields in outer zones, but capital’s often chasing those already.

• New York is endlessly dynamic. Median asking rents keep pressing higher, yet the investor’s net yield is usually ~3%–4% on condos once you account for costs. It’s still a blue-chip market, just one where income returns rarely sing.

• Singapore offers world-class stability and efficiency, with yields ~3.0%–3.4% on average. Policy tools (ABSD, LTV) are intentionally tight, and entry prices are high.

Side-by-Side at a Glance (Illustrative)

Method note: These are directional ranges using recent articles and market trackers; specific buildings/neighborhoods will vary. Always underwrite the exact unit.

Sources & benchmarks: yields and ROI comparisons (Arabian Business; Betterhomes), London yields (Zoopla/Savills aggregates via sector notes), NYC rents (Realtor.com), Singapore yields (GlobalPropertyGuide).

What This Means in Practice (A Quick Thought Experiment)

Let’s say you deploy USD 750k.

• In Dubai, you might secure a new, centrally located 1–2 bed with strong amenities and short-let potential (subject to zoning/permit). If you underwrite 7% gross, your headline rent could be ~USD 52.5k/year. After service charges and sensible vacancy/ops buffers, your net can still be meaningfully above what you’d expect in London/Singapore—before you account for the tax delta. (No income tax; no CGT on exit.)

• In London, the same capital might land you a compact unit in a Zone 1/2 neighborhood (or larger in Zone 3/4). On a ~3%–4% gross, you’re probably at ~USD 22.5k–30k/year before costs and taxes. The prestige premium is real; the income is less so.

• In New York, condo carrying costs (HOA/common charges + property tax) can erode gross quickly. Even with tight rental markets, most stabilized models I’ve seen end up in the low-single-digit net range unless you’ve found an exceptional deal.

• In Singapore, the underwriting is clean and the occupancy solid, but ~3%–3.4% gross is typical. Your “sleep-better-at-night” tradeoff comes at a cost to yield.

Is this perfectly symmetrical? No. That’s kind of the point: investors don’t live in symmetry; they live in spreadsheets with edge cases and coffee stains.

Micro-Drivers That Quietly Matter in Dubai

• Supply timing: Off-plan handovers can create mini-waves; the best operators plan leasing calendars around them.

• Short-let licensing: Tourism zoning/permits differ by community—your PM’s compliance muscle directly affects achieved ADR/occupancy.

• Service charges: Newer, amenity-rich towers can carry higher OPEX; still, net yields often clear peers thanks to the tax edge.

• Tenant mix: In “corporate-heavy” districts (DIFC, Dubai Marina), vacancy can be lower and rents firmer during hiring cycles.

• Visa leverage: The AED 2M Golden Visa route is not just lifestyle—banking, education, and travel convenience can be part of your return in non-cash terms. Dubai Land Department

Useful Reads (Competitor Benchmarks You Cited)

• Arabian Business comparison of yields and price momentum. Arabian Business

• World Financial Review overview across hubs. The World Financial Review

• Betterhomes blog: Dubai vs global hubs (ROI framing). Betterhomes

Price & Yield Reality (and where the math quietly changes your mind)

I’ve seen this pattern a hundred times: the investor begins with “prestige bias”—London or New York first, Dubai later. But when you line up yield, taxes, and entry costs, the spreadsheet starts whispering: go where the numbers work. Recent cross-market snapshots consistently peg Dubai’s gross rental yields around ~7%, outpacing both New York (~4.2%) and London (~2.4%) in like-for-like comparisons; the direction is stable even as cycles move. Betterhomes’ more recent comparative read (Sep 16, 2025) reaches the same conclusion on ROI: higher income and faster payback in Dubai versus London, New York, and Singapore.

London isn’t “low yield” everywhere, to be fair. 2025 snapshots show central postcodes like Westminster or Kensington and Chelsea in the ~2.5–4.5% band, with some outer-zone pockets stretching higher (a few outliers above 6%). That’s healthy context, but the citywide income story still trails Dubai’s.

New York’s rent growth has stayed firm in 2025 (median asking rent $3,491 in Q2), which sounds great—until HOA/common charges and property taxes compress your net. (NYC’s coop/condo tax abatements exist, but… it’s still property tax land.) Singapore? Ultra-stable and impeccably governed, yes, but typical yields sit around the low-to-mid 3% range—and ABSD stamp duties can bite for foreigners and multi-property buyers.

And the clincher that doesn’t fit neatly in a line item: UAE tax treatment. For individuals, there’s no personal income tax on rents and no capital gains tax on a property sale—tilting the IRR in Dubai’s favor before you even optimize operations. Add to that a clear residency pathway: buy AED 2M+ in real estate and you can qualify for a renewable 10-year Golden Visa; DLD spells out the investor route (including how mortgaged properties can qualify with minimum paid).

Do exceptions exist? Always. But if you’re optimizing for income + flexibility + residency, Dubai keeps winning the weighted scorecard.

Net-Yield Model (illustrative, conservative buffers)

Assumptions are deliberately vanilla—better to be pleasantly surprised than over-promise. Swap in your unit’s actual service charges, loan costs, and permit situation when we underwrite.

NYC property tax is modeled with a ~0.9% effective rate proxy—directionally consistent with public discussions of coop/condo effective rates; your exact rate depends on class, assessed value, abatements.

• UAE individuals: no income tax, no CGT (note: VAT applies to certain goods/services; not on residential rent).

• Singapore: no annual property tax equivalent for owner-occupiers the way NYC does it, but BSD/ABSD at acquisition can be material.

I’ve kept financing off the table to keep apples-to-apples. We can layer LTV, rates, and amortization later—especially helpful for showing equity IRR under 5- and 10-year hold periods.

Ownership Costs & Taxes (what investors actually pay attention to)

Sources: UAE tax summary (PwC), UAE Golden Visa (U.AE + DLD), NYC property tax/abatement (NYC DOF & guides), Singapore IRAS on ABSD/BSD.

The “price per square foot” conversation (and why it’s slippery)

Everyone asks for a single psf number. I get it. But psf hinges on micro-location, building age, amenities, views, and—honestly—marketing polish. Dubai’s entry pricing tends to be materially lower than prime London or Manhattan, which is part of why yields clear higher. That said, you can (and should) still underwrite service charges in amenity-heavy towers because high-spec common areas cost real money to run. (In NYC, by the way, HOA/common charges plus property taxes are the classic net-yield killer, even as median rents climb—$3,491 in Q2 2025.)

If you insist on a psf proxy for decision-making, I prefer banding by submarket and building vintage. We’ll map your short list and pull actual transaction comps (DLD records in Dubai, Land Registry/Zoopla for London, ACRIS/StreetEasy for NYC, URA caveats for Singapore) before we anchor offers.

Risk and regulation (brief, but let’s not skip it)

• London: Strong rule of law and deep liquidity, yes; yields compress in prime. Some outer zones offer higher income, but carry different tenant/void profiles.

• New York: Dynamic rental engine with rising asking rents, yet tax + HOA friction drags net returns. (There are abatements and quirks—just don’t model them as permanent windfalls.)

• Singapore: The ABSD regime is an intentional demand lever. Foreign buyers face 60% ABSD on residential—policy risk is part of the calculus.

• Dubai: Policy is pro-investment, and the Golden Visa via property is unusually straightforward (AED 2M+). Market cycles exist; supply timing around big handovers matters.

Micro-strategy: how smart buyers structure Dubai deals

1. Buy box clarity. Decide if you’re income-first (JVC/JLT/IMPZ-style yield plays) or liquidity-first (Downtown/DIFC/Marina).

2. Operator quality. If short-letting, confirm tourism permits and operator performance (ADR, occupancy, fees).

3. Golden Visa threshold. If residency is on your roadmap, structure the purchase to clear AED 2M cleanly (title, evaluation, mortgage paid-in minimums if applicable).

4. OPEX discipline. Amenity stacks are lovely; just model service charges realistically.

5. Exit framing. Choose buildings with resale liquidity signals: turnover volume, international buyer recognition, developer reputation.

Quick sanity check on sources (so you don’t have to chase links later)

• Dubai vs London/NYC yields: Arabian Business summary (~7% Dubai vs ~4.2% NYC and ~2.4% London).

• Betterhomes comparison (Sep 16, 2025) on ROI leadership for Dubai.

• London yields (area-level 2025): central 2.5–4.5% with outer-zone highs.

• NYC rents up 2025 and property-tax/abatement context.

• Singapore yields ~3%+ and ABSD/BSD (official IRAS).

• UAE taxes (no personal income tax / CGT for individuals) and Golden Visa (AED 2M+ investor route, DLD page).

Investor FAQs (short, practical answers)

What’s the minimum to qualify for the UAE Golden Visa via real estate?

AED 2 million in property value. If you finance, there’s a minimum paid-in requirement; applications are handled via DLD/ICP with title deed and standard documents. It’s a 10-year renewable visa route with family sponsorship options.

Is rental income in Dubai taxed for individuals?

No personal income tax on rent, and no individual capital gains tax on disposal. VAT can apply to certain services, but residential rent isn’t subject to personal income tax. (Corporate vehicles are different.)

What’s a realistic yield benchmark?

Directionally, Dubai often sits around ~7% gross, with building/area variance; London averages ~4.3% citywide (central pockets ~2.5–4.5%), New York hovers near ~3–4%, and Singapore tends to be ~3.0–3.4%. Always underwrite the specific unit.

Why do New York nets feel low even when rents are high?

Carrying costs—HOA/common charges + property tax—chip away at gross. NYC’s Q2-2025 median asking rent was $3,491, yet property tax and charges compress investor net yields quickly.

Is Singapore “bad” for yields?

Not bad—stable. But foreigners face ABSD of 60% on residential, by design a cooling measure. That shapes ROI assumptions even when occupancy is strong.

Can London still work?

Yes—particularly outer zones or regeneration pockets. But your income yield in central postcodes is typically lower (prestige premium), and transaction/holding taxes are heavier than in Dubai.

Is Dubai’s price cycle peaking?

Cycles happen. In mid-2025, Fitch highlighted potential double-digit price declines through late-2025/2026 amid large supply. Blue-chip assets and developer balance sheets looked resilient, but underwriting should include a downside band.

Price-per-sq-ft sensitivity (illustrative)

Why this matters: psf affects both entry and yield. Lower psf in Dubai lets you buy newer stock, which often rents faster (and cleaner) even if service charges are a tad higher.

Scenario: You’re comparing a new 1-bed in Dubai vs. a compact central London flat.

• Dubai: Asking $600/psf, 800 sq ft → $480,000. Market rent pencils to 7% gross on price (≈ $33,600/yr).

• London (central): Asking $1,400/psf, 540 sq ft → $756,000. Market rent pencils to 3.5% gross (≈ $26,460/yr).

• Delta: You’re committing $276k more in London to earn $7k less gross each year. And that’s before UK income tax and UK transaction costs vs. Dubai’s investor-friendly regime. London has prestige/liquidity upsides, but the income math tilts Dubai. (Citywide averages from recent snapshots support these ranges and yield relationships.)

Caveat: microlocation is everything. If the Dubai unit is in a building with unusually high service charges or weak operator performance, net can narrow. Likewise, select London outer-zone assets may out-yield the central average.

Five-year hold: simple IRR sketch (conservative bands)

Assumptions (illustrative): cash purchase (to keep apples-to-apples), 2% buying costs in Dubai vs. higher in London/NYC/SG; stable rents; modest appreciation bands that include downside.

Dubai base case

• Entry: $750,000 (fees ignored here for simplicity; we can layer them precisely later)

• Gross yield year 1: 7.0% → $52,500

• OPEX/service/vacancy: −$12,000 → $40,500 net

• 5-yr rental growth: flat to +2% CAGR (keep it cautious)

• Exit appreciation bands: −5% / 0% / +10% (reflecting 2025–26 supply risks and then normalization)

• Taxes on rent & gains (individual): 0% in UAE.

Approx. outcome (unlevered IRR)

• Downside (−5% price): IRR ~ 3.6–4.2%

• Flat (0% price): IRR ~ 5.3–5.9%

• Upside (+10% price): IRR ~ 7.7–8.4%

London (central average)

• Gross yield: ~3.5% on $750k → $26,250

• OPEX/vacancy (light): −$8,800 → $17,450 net (pre-tax)

• UK income tax: apply marginal rate; CGT on exit may apply; SDLT at entry is material (reduces effective IRR).

• Exit appreciation bands similar (−5/0/+10), but after-tax result typically trails Dubai unless you secure an outlier deal. (Recent reads place London average yields ~4.3%, central ~2.5–4.5%.)

New York

• Gross yield ~4.0%; but HOA + property tax meaningfully reduce net. Property tax rates (Class 2) and assessed-value mechanics apply; abatements exist but should not be modeled as perpetual. Recent median asking rent $3,491 confirms strength on the demand side, yet net yields remain constrained.

Singapore

• Gross ~3.0–3.4%, tight vacancy, but ABSD 60% for foreigners dramatically shifts total cash out and effective returns. Suitable for stability-biased allocations; less compelling for income-led ROI.

If you want, I can turn this into a spreadsheet with psf sliders, service-charge toggles, and ABSD/SDLT/NYC tax modules so you can tweak assumptions live.

Key facts cross-checked

• Dubai vs London/NYC yields (~7% vs lower): Arabian Business overview; Betterhomes ROI comparison.

• Golden Visa (AED 2M; docs & pathway): DLD investor page; ICP Golden Residency.

• UAE personal taxes (no income/CGT for individuals): PwC UA E tax summaries.

• NYC rents (Q2-2025 median asking $3,491): Realtor.com economic research.

• NYC property tax mechanics/rates: NYC DOF Class-2 guide; property tax rates page.

• London yields (avg ~4.3%; central 2.5–4.5%): 2025 snapshots from Zoopla/Savills via recent market pieces.

• Singapore ABSD (foreigners 60%): IRAS. Yields ~3.0–3.4%: GlobalPropertyGuide.

• Cycle caution for Dubai (supply/correction): Fitch via Reuters.

Ownership Cost Stacks (what quietly changes the IRR)

Not all “costs” show up on day one. Some nibble at your net every month; others hit up-front at the notary table. This stack shows the major buckets you should model. I’m deliberately not hard-coding jurisdictional percentages (they move, have thresholds, or depend on buyer profile). Treat these as line-items to fill with your exact case when we underwrite your unit.

Two quiet killers in most markets: property tax (absent in Dubai for individuals) and HOA/common charges (present everywhere, but materially higher in full-service NYC condos). The third killer is acquisition duty: Singapore’s ABSD for foreign buyers is policy by design; in London, SDLT steps up by bands; NYC has its mansion/transfer/mortgage stack. Dubai’s simplicity is, frankly, part of the edge.

Ready to model your exact unit?

• Free 20-min strategy call: map your buy-box, net yield, and Golden Visa pathway.

• Two comps packs: one income-first (JVC/JLT/districts), one liquidity-first (Downtown/DIFC/Marina).

• Operator check (if short-let): permits, ADR/occ benchmarks, fees.

Book now: Totality Real Estate
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If you strip the emotion out—and we should, mostly—Dubai’s investment case comes down to income, tax, and optionality. Income because gross yields tend to be higher; tax because the UAE doesn’t tax your rent or gains as an individual; optionality because a property above AED 2M can unlock a renewable 10-year Golden Visa with family sponsorship. Prestige markets like London and New York are still incredible places to hold real estate, no argument; Singapore is, arguably, the gold standard of stability. But when the spreadsheet stops romanticizing skylines and starts modeling net return, Dubai keeps winning this brief.

Two caveats I like to repeat (annoying, perhaps, but useful):

1. Building selection matters—service charges, operator quality, and micro-location can swing net yield more than glossy brochures suggest.

2. Cycles exist—underwrite with a downside band for price and a sensible vacancy buffer; you’ll sleep better and buy smarter.

Want a custom comp pack?

Tell me your budget, preferred neighborhoods, yield target, and whether Golden Visa is a must. I’ll prepare: (a) two shortlists (income-first vs liquidity-first), (b) a one-page underwriting summary (gross → net), and (c) a simple five-year hold model (base / downside / upside).