Every global city looks attractive in its own unique way, some shine with business vibes, others with cultural charm. But when we talk about the practical side of investing, things look a bit different. Every city has some real flaws that directly impact investors’ choices, like high taxes, strict ownership rules, or unstable markets.
That’s why, if we really want to understand why Dubai is doing better than others, we first need to check out the actual problems in these other global cities.
In the table below, you can see each city’s main investment flaw and a quick reason for it. This shows exactly why Dubai feels so appealing to investors.
| City | Major Investment Flaw | Explanation |
|---|---|---|
| New York | High taxation & operating costs | Property, income, and maintenance taxes are extremely high, reducing overall ROI. |
| London | Market instability after Brexit | Political uncertainty and changing regulations have weakened investor confidence. |
| Singapore | Strict foreign ownership rules | Foreign buyers face high stamp duties (ABSD), making entry expensive. |
| Hong Kong | Political tension & reduced investor trust | Ongoing political issues and China’s integration have made investors cautious. |
| Paris | Low rental yield with high property prices | Properties are expensive, yet average rental yields remain only 2–3%. |
| Sydney | Overpriced real estate market | Property prices are inflated, and there’s a growing risk of market correction. |
| Tokyo | Aging population & stagnant demand | Japan’s shrinking population limits long-term housing and rental demand. |
| Shanghai / Beijing | Unpredictable government policies | Sudden regulatory changes create uncertainty for foreign investors. |
| Zurich | Extremely low rental yields | Safe but slow market. Rental returns are often just 1–2% annually. |
What Global Investors Are Saying: Real Voices
When you scroll through online communities like Reddit, you’ll find thousands of real discussions from investors comparing Dubai to other global property hubs such as London, New York, and Singapore. These forums reveal what’s really driving investor decisions, beyond marketing brochures and headlines.
Here’s what people are saying:
1. Dubai Is Way More Affordable Than Other Major Cities
Many users highlight that Dubai offers luxury and lifestyle comparable to global capitals, but at a fraction of the cost. Investors note that even high-end apartments in central Dubai often cost half or less of what you’d pay in New York or London.
2. Real Estate Prices Are Dramatically Lower
Forum discussions often compare price per square foot across cities, and Dubai consistently comes out ahead. For investors entering the luxury or mid-range market, the lower barrier to entry is a huge attraction.
3. You Can Actually Save More in Dubai
When it comes to cost of living, many expats and investors point out that tax-free income and lower daily expenses allow them to save and reinvest more in Dubai than in other high-tax cities.
How the Global Investment Scene Changed After 2020
The whole world’s global investment flipped after 2020. People used to think these places like London, New York, and Singapore were the safest, steadiest places to invest their cash. But after the pandemic, that perception shifted.
As a Result:
- After the pandemic, inflation increased in the global economy.
- Governments raised interest rates, which is the cost of borrowing money.
- This made it difficult to buy homes or properties.
In the UK, buying homes was already expensive, but when interest rates and living costs both increased, demand decreased. People slowed down their purchases of homes.
A similar situation occurred in America: Mortgage rates, which is the interest on home loans, increased so much that buyers stopped. As a result, price growth in the market slowed.
So, when taxes, high costs, and uncertainty increased in Western countries. At the same time, Dubai attracted investors due to its low taxes, strong economy, and boom in luxury properties. In early 2025, Dubai’s prime property prices reached double-digit growth.
What Makes Dubai Stand Out for International Investors
These are the reasons which attract international investors and make Dubai a best place to invest.
1. Exceptional Return on Investment (ROI)
Investors always ask: how much real return remains after costs, taxes, and hiccups? High advertised yields mean nothing if net returns are weak.
In Dubai:
- Average gross rental yields for apartments range between 5.5% to 9%, while villas and townhouses often yield 4%–6%.
- Some projects claim rental yields up to 11.2%, especially in emerging zones or well-priced communities.
- Apartments in areas like Dubai Investment Park currently show ROI projections as high as 10.50%.
| Factor | Dubai | New York | London | Singapore | Hong Kong |
|---|---|---|---|---|---|
| Rental Yields | 6–8% (among highest globally) | 3–4% | 2–3% | 2–3% | 2–3% |
| Property Price per sq.ft. (avg) | $700–$1,200 | $1,500–$2,000 | $1,800+ | $1,500+ | $2,000+ |
Dubai real estate offers higher returns, easier ownership, and lower prices. A rare combination among global cities.
2. Tax-Free Investment Environment
Many investors lose large chunks of returns to taxes: capital gains, property tax, income tax, especially in mature Western markets.
| City | Property Tax | Rental Income Tax | Capital Gains Tax | Purchase / Transfer Fee |
|---|---|---|---|---|
| Dubai | 0% | 0% | 0% | 4% DLD Fee |
| London | 1–2% yearly | Up to 45% | Up to 28% | Up to 12% Stamp Duty |
| New York | 1–2% yearly | Up to 24% + state tax | Up to 20% | 1–2% Transfer Tax |
| Singapore | Varies (higher for foreigners) | Progressive (up to 22%) | 0% (regulated) | Up to 20% Buyer Stamp Duty |
3. Affordable Entry with Global Luxury Standards
The barrier to entry in cities like London or Manhattan is simply too high, you might pay more for a small apartment than you’d pay for a large luxury flat in Dubai.
4. Investor-Friendly Policies and Long-Term Visas
Global cities impose restrictive ownership rules, visa conditions, or require local partnerships, making foreign investment crucial or risky.
- Dubai offers 100% foreign ownership without a local partner needed.
- The Golden Visa program for real estate investors. Issue Golden Visas, 47,150 in 2021 to 158,000 in 2023.
5. Strategic Location and Global Connectivity
Why pick Dubai, of all places? Beyond returns, geography and connectivity matter: your investment needs people, movement, and access.
Because:
- Dubai sits between Europe, Asia, and Africa.
- It has world-class airports, logistics, trade routes, and business infrastructure.
- Many global businesses use Dubai as a MENA base.
- During global slowdowns, Dubai’s connectivity and open economy help it bounce back faster.
Key Takeaways for International Investors
Here’s your distilled checklist before you invest:
- Be realistic with return forecasts: expect 5–9% net, not 15% baseline.
- Factor in all costs: service charges, maintenance, vacancy, taxes.
- Leverage tax-free advantage fully.
- Pick projects that qualify for Golden Visa or long-term ownership rights.
- Target neighborhoods with growth infrastructure.
- Talk to local agents like Habico Properties about actual absorption rates, upcoming handovers, and resale history.
- Visit multiple property types to understand value differences.
- Benchmark Dubai vs London/NYC/Singapore for your specific budget and desired return profile; use real data of rent, taxes, fees.
FAQ
Why do traders prefer Dubai?
The biggest attraction for traders in Dubai is the tax-free environment and free zones where they face fewer regulations. Moreover, the city’s strategic location connects them easily to global markets.
How does Dubai attract investors?
Dubai pulls in investors because it has 0% capital gains tax, 0% income tax, and 0% property tax. The government also offers incentives like the Golden Visa and freehold ownership rights.
Why is everyone investing in Dubai?
People are investing in Dubai due to high rental yields, world-class infrastructure, and strong growth opportunities in both real estate and business, all backed by economic stability.
The Bottom Line: Why Dubai Wins
Many international investors are switching from hesitation to action when it comes to Dubai for good reason. It is not because Dubai is cheaper. It’s that Dubai combines lower cost, strong growth, investor-friendly policy, and upward-driven demand in ways that many traditional global cities can’t match right now.
Yes, risks exist, oversupply in some areas, possible price softening, and global economic headwinds. But for those who do their homework, pick well located properties, and plan for the medium term 3-5 years, Dubai offers high returns, quality living, and lower friction.
Ready to explore investment opportunities in Dubai?
Connect with Habico Properties today — and let’s find your next high-performing property in the world’s favorite investment city.