Capital always moves toward clarity. Right now, clarity is scarce in most traditional property markets. Dubai sits on the opposite end of that spectrum.
The Global Context
In the UK, capital gains tax, inheritance tax exposure, and rising mortgage costs are compressing returns. In the US, regulatory uncertainty and proposed tax increases are forcing high-net-worth investors to rethink long-term holds. In parts of Europe and Asia, capital controls and wealth taxes are actively discouraging foreign ownership.
The Dubai Advantage
Dubai offers a unique value proposition:
- Tax Efficiency: No capital gains tax, no annual property tax, no tax on rental income.
- Currency Stability: Pegged to the US dollar, reducing FX risk.
- Ownership Rights: 100 percent foreign ownership in designated zones.
This is why Dubai became the world’s busiest market for homes priced above USD 10 million in consecutive years. It is also why over 6,700 millionaires relocated to the city in a single year, with more expected.
Yield vs. Affordability
What often goes unnoticed is how affordability intersects with yield. Despite its global positioning, Dubai ranks far lower than London or New York in price per square foot while delivering materially higher rental income.
"A USD 1 million property in Dubai typically generates almost double the annual rental income of an equivalent asset in London or New York."
Investors are not just buying property; they are buying optionality. Residency visas, world-class healthcare, and a low-friction environment simply compound the investment case.
The result is a repricing cycle. Global investors are no longer asking whether Dubai belongs in their portfolio. They are asking how much allocation it deserves.