Dubai vs Other Global Metropolitan Cities. Why Dubai Stands Out for Property Investment
By Royal Tiara Real Estate Brokers
Dubai has rapidly emerged as one of the world’s leading real estate destinations, thanks to its competitive prices, low fees, and highly investor-friendly policies. In the latest Global Economic Performance Report by The Economist, Dubai ranked third most prominent city worldwide.
While it competes with major global hubs like Hong Kong, London, Sydney, Phuket, and Niseko, Dubai offers advantages that few other cities can match — especially when it comes to property investment potential.
Dubai vs Hong Kong – Key Comparison
Economic Strength
Both Dubai and Hong Kong have resilient economies with currencies tied to the US dollar. Both are known for low taxation, ease of doing business, and strong free-market environments.
- Hong Kong: Highly dependent on finance and trading sectors, with limited diversification.
- Dubai: Actively diversifying into technology, education, logistics, manufacturing, and tourism under a 10-year economic development plan.
Affordability
Property prices in Dubai are significantly more attractive.
- In Dubai, AED 3.6M (USD 1M) buys around 1,130 sq. ft of upscale real estate.
- In Hong Kong, the same budget gets just 226 sq. ft.
Dubai’s affordability is largely driven by a consistent supply of new developments — over 50,000 new properties launched in 2022, the highest since 2008.
Ownership Rights
- Dubai: Most properties are freehold, meaning full ownership for an unlimited period. Owners can sell, rent, or occupy the property without government approval.
- Hong Kong: All land (except St. John’s Cathedral) is leasehold, typically for 50 years. Lease renewals come with annual rent charges.
Transaction Time and Fees
- Dubai: Property transactions usually close in 4 weeks.
- Hong Kong: Average is 2 months.
In Dubai, foreigners pay the same fees as residents, with no additional taxes. In Hong Kong, foreigners face multiple extra costs, including a 15% Ad Valorem Stamp Tax, 15% Buyer’s Stamp Duty, and up to 20% Special Stamp Duty for short-term sales.
Cost Comparison – AED 800,000 Property (Owned for 12+ Months)
| Fees | Dubai (AED) | Hong Kong (AED) |
|---|---|---|
| DLD Fee | 32,000 + 580 | – |
| Property Registration Fee | 4,000 + VAT | 845 |
| Agent Fees | 16,000 + VAT | 8,000 |
| Stamp Duty | – | 120,000 |
| Special Stamp Duty | – | 80,000 |
| Buyer’s Stamp Duty | – | 120,000 |
| Title Deed | 250 | – |
| Total | 854,000 | 1.12M |
Result: The same investment costs far more in Hong Kong than in Dubai.
Rental Income and Taxes
- Dubai: No rental income tax, ROI between 5% and 8%, high tenant demand due to population growth.
- Hong Kong: 15% rental income tax, ROI around 2% to 3%.
Average monthly rent for a one-bedroom:
- Dubai: AED 4K – 6K
- Hong Kong: AED 5.5K – 9K
Residency via Investment
- Dubai:
- 2-Year Investor Visa: Property worth AED 750K or more.
- 10-Year Golden Visa: Property worth AED 2M or more.
- Both allow spouse and children sponsorship. Golden Visa also allows domestic staff sponsorship.
- Hong Kong:
- Real estate investment residency program suspended as of 2023.
Dubai vs Other Global Cities – Quick Comparison Table
| City | Avg. Price per sq. ft | Avg. Monthly Rent (1-BR) | Min. Investment for Visa | Rental Income Tax | ROI |
|---|---|---|---|---|---|
| Dubai | AED 1,000 | AED 4K–6K | AED 750K | No | 5–8% |
| Niseko | AED 4,700 | AED 1,200 | – | 20.42% | 4–5% |
| Phuket | AED 918 | AED 2,200 | AED 1.8M | 15% | 5% |
| Singapore | AED 2,000 | AED 8,000 | – | 11–27% | 4–5% |
| UK | AED 1,800 | AED 5,500 | – | Variable | 4–5% |
| Sydney | AED 3,800 | AED 8,800 | – | 32.5–45% | 4% |
| Canada | AED 4,000 | AED 6,000 | – | 0.5–2.5% | 3–4% |
Conclusion
Dubai outperforms many major global cities in terms of ROI, tax benefits, and investor-friendly policies. The absence of rental income tax and availability of long-term visas make it an attractive destination for property buyers seeking strong returns and residency benefits.
FAQs – Dubai vs Other Cities for Property Investment
1. Why is Dubai property more affordable than Hong Kong?
Dubai has a much larger supply of new properties, competitive land pricing, and lower acquisition fees.
2. Do foreigners pay higher fees in Dubai?
No. Foreigners pay the same fees as UAE residents, with no extra taxes.
3. What is the ROI difference between Dubai and Hong Kong?
Dubai offers 5%–8% ROI, while Hong Kong averages 2%–3%.
4. Can property buyers get residency in Dubai?
Yes. Investors can get a 2-year visa (AED 750K property) or 10-year Golden Visa (AED 2M property).
5. Which other cities compete with Dubai for investment?
Cities like London, Singapore, Sydney, and Phuket attract investors, but few match Dubai’s combination of high ROI, no rental tax, and affordable entry prices.
