How Do Property Prices in Dubai Compare to Other Global Markets in 2025?

Dubai’s real estate market has long been a beacon for global investors, offering a unique blend of luxury, affordability, and high returns. As we look ahead to 2025, the city’s property market continues to stand out as a compelling investment destination, especially when compared to other major global cities. But how do property prices in Dubai compare to other global markets in 2025? In this article, we’ll dive into the numbers, explore the factors driving Dubai’s real estate growth, and explain why now is the perfect time for investors to capitalize on this thriving market.

Dubai’s Property Market: A Global Standout

Dubai’s real estate market is renowned for its affordability, high rental yields, and strong growth potential. As of 2024, the average price per square foot of property in Dubai is around $550, significantly lower than many other global cities. This affordability, combined with the city’s tax-free environment and world-class infrastructure, makes Dubai a top choice for investors seeking value and returns.

Dubai vs. Other Global Cities: A Price Comparison

To understand Dubai’s competitive edge, let’s compare its property prices with those of other major global cities:

1. London

• Average Price per Square Meter: AED 23,000 (approximately $6,260).
• Dubai Comparison: Dubai’s average price per square meter is around AED 2,000 ($550), making it 70% cheaper than central London.

2. New York City

• Average Price per Square Meter: AED 30,000 (about $8,170).
• Dubai Comparison: Dubai’s prices are 85% lower than Manhattan’s, offering incredible value for luxury properties.

3. Hong Kong

• Average Price per Square Meter: AED 35,000 (roughly $9,530).
• Dubai Comparison: Dubai’s property prices are 94% lower than Hong Kong’s, making it a far more affordable option for investors.

4. Singapore

• Average Price per Square Meter: AED 18,000 (about $4,900).
• Dubai Comparison: Dubai’s prices are 65% lower than Singapore’s, offering better value for money.

5. Sydney

• Average Price per Square Meter: AED 25,000 (approximately $6,810).
• Dubai Comparison: Dubai’s property market is 80% more affordable than Sydney’s.

6. Paris

• Average Price per Square Meter: AED 21,000 (about $5,720).
• Dubai Comparison: Dubai’s prices are 75% lower than Paris’s, making it a more accessible market for investors.

Luxury Property: Dubai’s Competitive Edge

When it comes to luxury properties, Dubai’s affordability becomes even more striking. The average price per square meter of luxury property in Dubai is around $3,850, compared to:

• London: $19,350 (80% higher).
• New York: $22,850 (83% higher).
• Hong Kong: $28,300 (86% higher).

This significant price difference, combined with Dubai’s luxurious lifestyle offerings, makes it a top destination for high-net-worth individuals and investors seeking premium properties.

Dubai’s Real Estate Growth in 2025

Dubai’s property market has shown remarkable growth in recent years, outpacing many global cities. Here’s what makes 2025 an exciting year for investors:

1. Strong Price Appreciation

• In 2023, residential properties in prime areas rose in value by 17.4%, far exceeding the global average of 2.2%.
• In Q1 2024, apartment prices surged by 20.43% year-over-year, while villa prices increased by 22.08%.

2. High Rental Yields

• Dubai offers rental yields ranging from 5% to 9%, significantly higher than many global markets.

3. Low Transaction Costs

• Transaction costs in Dubai amount to less than 10% of the purchase price, enhancing the potential return on investment.

4. Expo 2020 Legacy and Dubai 2040 Urban Master Plan

• The success of Expo 2020 and the ambitious Dubai 2040 Urban Master Plan are driving infrastructure development and sustainable growth, ensuring long-term value for investors.

Why Invest in Dubai’s Real Estate Market in 2025?

1. Affordability

Dubai’s property prices are significantly lower than those in other global cities, offering better value for money.

2. High Returns

With strong price appreciation and high rental yields, Dubai’s real estate market delivers impressive returns.

3. Tax-Free Environment

Dubai’s tax-free policies allow investors to maximize their profits without worrying about income tax, capital gains tax, or inheritance tax.

4. Expat-Friendly Policies

Freehold ownership, long-term visas, and a safe, cosmopolitan lifestyle make Dubai an ideal destination for international investors.

5. Luxury Lifestyle

From world-class amenities to stunning architecture, Dubai offers a luxurious lifestyle that attracts buyers from around the globe.

Partner with PHOREE Real Estate for Your Investment Journey

For those looking to invest in Dubai’s real estate market, PHOREE Real Estate is your trusted partner. With 40 years of American wealth management expertise, AI-driven insights, and a commitment to client success, PHOREE offers unparalleled guidance and results.

To start your investment journey today, contact us:

• Visit: www.phoree.ae
• Hotline: +971549908590
• Email: Info@PHOREE.AE
• Chat on WhatsApp: +971549908590