Dubai property outperforms London and New York

by Teodora Bondoc on December 11, 2024

Dubai property outperforms London and New York
Photo Source: VisitDubai.com

Dubai property outperforms London and New York, traditional leaders,  and has had the upper hand in terms of returns, in a remarkable display of resilience and growth. With outstanding investment yields of 7% and property prices North of the average performance on counterpart markets, experiencing double-digit increases, Dubai has cemented its position as one of the most lucrative real estate markets in the world.

A City of Opportunity

Much to the delight of global investors, Dubai has evolved into an investment magnet, providing high returns and long-term value. In 2024, while London and New York struggled with tempered price growth and rental yields sitting shy South of 5%, Dubai’s market secured investors’ yields of up to 7% from rentals in prime locations and even higher in emerging areas like Jumeirah Village Circle and Dubai South.

The property price appreciation has been equally noteworthy. Following a 48.8% surge in 2023, prices for prime real estate in Dubai have continued to rise by a steady 15-20% this year. Areas such as Palm Jumeirah, Downtown Dubai, and Mohammed Bin Rashid City have brimmed with investment activity, bringing in high-net-worth individuals (HNWIs) from across the globe.

Driving Factors Behind the Success

Several factors underpin Dubai’s exceptional performance in the global real estate arena.
First and foremost, the city’s investor-friendly policies, such as the Golden Visa program and relaxed property ownership laws, have drawn a wave of foreign investors seeking stability and security. Over 150,000 Golden Visas have been issued since the program’s inception, many of them linked to property investments.

Dubai property outperforms London and New York also as a strategic location, connecting East and West, and its status as a global business hub have also been key drivers. The city’s stellar infrastructure, outstanding quality of life, and absence of income tax make it a desirable destination for expatriates and investors alike.

In an almost stark contrast, London and New York face challenges such as increased taxation on foreign buyers, higher interest rates, and political uncertainties, which have tempered real estate growth. Dubai, in contrast, has capitalized on its position as a safe haven for global capital, attracting buyers from Europe, Asia, and beyond.

Luxury Leads the Way

Surprisingly or not, the luxury segment continues to dominate Dubai’s real estate market. Architectural gems such as the Atlantis The Royal Residences and the Bulgari Resort & Residences have garnered global acclaim, with transactions recording all-time highs. Yet, despite the glamour, Dubai remains competitively priced compared to its counterparts. While a prime property in Manhattan or Central London averages $2,000 to $3,000 per square foot, Dubai’s luxury properties often fall in the $800 to $1,200 range, offering exceptional value for money.

The Future Looks Bright

Dubai’s real estate market not only doesn’t show signs of slowing down but the claim that it is only going up is substantiated by upcoming projects the likes of Dubai Urban Master Plan 2040 and the expansion of Expo City will further enhance the city’s appeal, proof that there is still going to be demand for constructions both on the residential and commercial segments. Experts predict steady double-digit price growth for 2025, bolstered by sustained demand and limited supply in key neighborhoods.

Lastly…

For those considering their next move, Dubai offers more than just numbers—it offers a lifestyle, a vision for the future, and a promise of enduring value. Whether you’re looking for high rental yields, long-term capital appreciation, or simply a foothold in one of the world’s most exciting cities, Dubai is the answer.

In 2024, Dubai isn’t just competing with London and New York; it’s leading the way.