It's no secret that the property market in Dubai is in good health, with soaring house prices and rising rents showing no sign of abatement. But how does it compare to other parts of the world?
Dh1 million ($270,000) can buy you a two-bedroom apartment with private pool, gym access and a parking space in Dubai - but what can it get you elsewhere?
While many residents might long for property prices of years gone by, experts told The National that Dubai still offers significant value for money, particularly when compared to some of the more established global markets.
"In Dubai, you can get a nice one-bedroom apartment [for Dh1 million] or, if you go further out, you can get a two-bedroom in buildings with swimming pool access and parking spaces," said Ben Blackwell, area manager at estate agency Betterhomes. "You'd just about get a parking space in London for the same money. Or else you'd have to be living way out on the outskirts to afford something similar for that price."
The National reported last month how property prices were only going to increase, because demand was still exceeding supply, a report from ValuStrat management consultancy found. The same report said property prices for villas had increased by more than 31 per cent in 2024, while the price of apartments had increased by almost 24 per cent during the same period.
Contrasting fortunes
Setting Dubai against other more-established property markets is hardly a like-for-like comparison, however, said another expert.
"You can't directly compare them, each offers different things and the property market in Dubai has been operating for around 23 years, while it has been around for hundreds of years in London," said Mario Volpi, head of brokerage at Novvi Properties. "What you can say is as an emerging market you get much more bang for your buck [in Dubai]. It's very, very good value for money, despite three to four years of house prices inflating."
It is clear that properties in Dubai are not getting cheaper but it still has some way to go to match the prices of some other established markets. The average cost of property in the emirate is Dh1,608.64 per sq ft, the Global Property Guide website suggests.
This is some way off the cost in Hong Kong, which is Dh8,046.88, while those living in Paris can expect to pay Dh3,527.43 and in London Dh3,447.62. If you are in New York, it is Dh1,862.06 and in Tokyo Dh1,718.82.
Mr Blackwell is adamant Dubai still offers value for money, especially compared to other markets across the world.
"It used to be the case, around 10 years ago, that the property market in Dubai might still have been seen as a gamble but that's not the case any more," he said. "Now it's an established place, with more and more companies moving here and many international brands opting for Dubai as their headquarters. It's a much more mature market and we're seeing a change from it being completely investor based to end-user based. Although it is a lot more expensive than it was five to 10 years ago, comparably it still offers fantastic value and you can consider particularly the western markets."
He said the difference between what you get in Dubai and in his hometown of London was clear. "It's night and day what you get in London compared to Dubai," said Mr Blackwell. "London is a massive commuter market where people are travelling from all over, which means people are having to go further and further out to get value for their money. To get something similar to the same price as what you would get in Dubai, you would have to be prepared for an extraordinarily long commute."
Many other popular cities do have apartments on offer for about Dh1 million or less but they are likely to be smaller and/or less luxurious than those in Dubai for the same price.
In Hong Kong, this is enough for a 212 sq ft apartment in a tower block that many buyers would consider to be at the bottom end of the market in terms of comfort.
Buyers in Tokyo could secure at 347 sq ft one-bedroom apartment in the Bunkyo-Ku neighbourhood a short commute north-west of the centre. It is in much better condition than an apartment for the same money in Hong Kong.
In New York, for about the same amount buyers have the option of a newly decorated 950 sq ft two-bedroom apartment in a gated community in the Bronx, a borough sometimes regarded as one of the city's less safe areas. For about a fifth of the size, someone with Dh1 million in their pocket seeking a home in Paris could choose a compact 205 sq ft eighth-floor one-bedroom apartment in the 15th arrondissement.
Quality concerns
Mr Blackwell was also quick to dispel suggestions that properties in the region were inferior in terms of durability compared to more mature markets. "The reason why people feel buildings age quicker here is because there are so many new buildings being constructed, so anything that's even just five years old might suddenly feel old," he said. "The truth is you have some fantastic construction companies here [in Dubai] that are delivering high-quality products."
Investors told The National last month that the property market in Dubai was "on steroids". The emirate's real estate sector has maintained robust growth momentum in recent years, recording deals worth Dh761 billion ($207.2 billion) last year, up 20 per cent annually. The boom is aided by government initiatives including residency permits for retired and remote workers, an expanded golden visa programme, as well as strong economic growth in the UAE.
Global buyers
It is not only London that Dubai measures well against. "Dubai offers great value compared to cities like London, Tokyo and New York for a few key reasons," said Lewis Allsopp, chairman at Allsopp & Allsopp estate agency. "Being a relatively new city, Dubai was planned for efficiency and has benefitted from modern urban infrastructure, well-organised communities and highly desirable living spaces."
Another factor in Dubai's desirability was the likelihood of making a profit on your investment, he added. "As an investment, your property in Dubai is more likely to increase in value than the UK due to the buoyant market in the UAE," said Mr Allsopp. "Dubai's business-friendly environment with minimal taxation and no property taxes makes it a highly cost-effective choice for homeowners and businesses alike. Simply put, you get for your money in Dubai."
According to Kelcie Sellers, an associate director at the property agent Savills and a member of the company's World Research Consultancy, "Dubai represents incredible value" compared to cities such as San Francisco, London, Paris, Hong Kong and Tokyo.
She said the emirate's prices provided better value because the city was "much less space-constrained" and had "a lot more room for growth" than, for example, Hong Kong, New York or Tokyo. According to Savills' data, prices per square foot in Hong Kong are about four times those of Dubai, while central London is more than twice as expensive, Tokyo is nearly 130 per cent more costly and Paris twice as much.
The company reported that average capital values in Dubai increased 6.8 per cent last year. Only a handful of major world cities – Madrid, Barcelona, Tokyo, Amsterdam and Seoul – recorded percentage increases as high as those in Dubai.
"We've been seeing constantly elevated capital value growth in Dubai over the past couple of years, even though there's room for growth, and we're seeing supply being added relatively frequently," Ms Sellers said. "What we're seeing when we speak to our teams out there is there's an incredible amount of demand for residential property out there.
"When we're talking about Dubai, we're seeing very global buyers. There are buyers from across Europe, North America, Asia-Pac [Asia-Pacific]. It's seen as this destination that's been on everyone's list for the last couple of years."
In Savills' World Cities Prime Residential report there are only a few major cities – Barcelona, Cape Town and Kuala Lumpur – where properties are cheaper than in Dubai. Of these, Barcelona is only about 6 per cent cheaper than Dubai, Ms Sellers said, while Cape Town and Kuala Lumpur may be more regional markets but are nevertheless "growing quickly".
