Dubai and New York City (NYC) represent two distinct real estate markets with unique strengths. Both allow foreign ownership of properties, with distinct eligibility criteria. However, Dubai often emerges as the superior choice for investors across several key metrics.
Price Advantage
According to a report by data agency Numbeo, price per sq. ft to buy an apartment in Dubai is nearly 72% less than that in NYC. Interestingly, with USD 1 million, you can secure 980 square feet of prime residential space in Dubai, compared to 366 square feet in New York, as per a Knight Frank report.
Clearly, it’s cheaper to buy a large luxury property in Dubai compared with NYC.
Also, as Dubai is a relatively new real estate market with high growth potential, the higher your holding capacity, the better the capital gains.
Rental Yields
Dubai’s dynamic economy and growing population contribute to a strong demand for rental properties. NYC offers stable rental income but faces challenges that can impact overall profitability.
NYC offers average annual gross rental yields of 2–3% or more for investors. Meanwhile, Dubai promises attractive rental yields of 2.22%–8.76%, according to a Baron & Cabot report.
Capital Appreciation
With a growing population, there is a rising demand for properties in both cities. NYC real estate has registered a price appreciation of 79% in the last ten years. In contrast, Dubai’s price appreciation exceeds 85%. Interestingly, prime properties in Dubai have appreciated by 115% over the last decade.
Both NYC and Dubai boast superior infrastructure. However, Dubai’s infrastructure development projects are highly ambitious and sustainable, and significantly drive property values. Iconic landmarks such as the Burj Khalifa and Palm Jumeirah, and the upcoming Palm Jebel Ali, position Dubai as a top property investment destination.
Exclusive Collection of Luxe Properties
Dubai sets new benchmarks in luxury lifestyle with its lavish residential options featuring unmatched amenities. The city’s status as a top lifestyle destination is comparable to that of New York City.
Tax Benefits
Dubai has a favorable tax system with no income tax, no capital gains tax (in most cases), and minimal property taxes. This ensures high returns on investment. NYC, however, has relatively higher tax burdens.
Foreign Ownership & Golden Visa
Both cities allow foreign ownership of properties, with distinct eligibility criteria. But investors in designated properties in Dubai (or anywhere in UAE) can secure the coveted long-term UAE residency visa—Golden Visa.
Strategic Location
Dubai is strategically located, connecting Asia, Europe and Africa. It is also a global aviation hub, with the world’s largest airport in the making. NYC, on the other hand, is renowned as the business centre of the world.
Contact QSA Real Estate for a free consultation on profitable property investments in Dubai.
