Dubai’s real estate sector has emerged as a global leader, outperforming renowned markets like London and New York with remarkable returns. Offering an impressive 7% gross investment yield, Dubai outpaces New York’s 4.2% and London’s 2.4%, making it an attractive option for investors seeking consistent rental income and capital appreciation.
Year-on-year, Dubai’s inflation-adjusted property prices have surged by 16.5%, driven by strong demand and limited supply in prime locations. By comparison, New York recorded an 8.1% increase, while London lagged significantly at just 1.6%.
Louis Harding, Managing Director at Betterhomes, commented:
“This milestone highlights Dubai’s remarkable appeal as a place to live and work. While growth is never entirely linear, I expect the market to remain strong as the population rises, the city matures, and the 2040 Urban Master Plan unfolds.”
Exceptional Value at Competitive Prices
With an average sale price of just $438 per square foot, Dubai offers unparalleled value compared to London or New York, where prices far exceed AED 2,500 per square foot. Despite its reputation for luxury and cutting-edge amenities, Dubai remains accessible to a diverse range of buyers.
The market offers a unique combination of affordability and premium quality, providing lavish lifestyles at a fraction of the cost of other global cities. This affordability, combined with world-class infrastructure and developments, attracts homebuyers, expatriates, and investors alike.
Pro-Investor Ecosystem Driving Growth
Dubai’s government has cultivated a robust pro-investor environment through strategic initiatives such as visa reforms, zero property taxes, and the ambitious Dubai Economic Agenda D33. These policies have solidified the city’s reputation as a hub for businesses, expatriates, and high-net-worth individuals.
Additionally, Dubai’s appeal is amplified by its modern infrastructure, global connectivity, and family-friendly atmosphere. Its position as an international travel hub, combined with a safe and vibrant living environment, makes it an ideal destination for residents and investors.
Future-Ready Market Amid Global Challenges
Dubai’s proactive governance and forward-looking policies have set it apart in a volatile global real estate landscape. Unlike London, grappling with post-Brexit uncertainties, or New York, dealing with affordability crises, Dubai continues to thrive.
The city is experiencing growing demand spurred by mega infrastructure projects, an expanding expatriate population, and diversification into emerging economic sectors. Its leadership’s commitment to sustainable growth, paired with investor confidence, ensures that Dubai’s real estate market is not only thriving today but is also well-prepared for long-term success.
A Lifestyle Like No Other
Beyond financial advantages, Dubai offers a superior quality of life. From safety and modern infrastructure to a pleasant climate and a family-oriented environment, the city excels in lifestyle offerings.
While London and New York remain iconic, they face challenges such as high living costs, congestion, and harsh climates. Dubai, on the other hand, combines affordability with luxury, making it a top choice for global investors and residents.
Published On: 28 Nov 2024
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-outperforms-london-and-new-york-with-superior-7-investment-yields-and-double-digit-price-increases
