If you’re eyeing real estate investment, Dubai and Abu Dhabi are tough to beat, but how do they compare to powerhouses like London, New York, Hong Kong, and Singapore? With high rental yields, no taxes, and a luxe lifestyle, the UAE’s a standout choice. Taraf Holding’s premium properties in prime locations make it easy to dive in. Let’s break down how these cities stack up, with tables and sources to keep things clear.
1. Rental Yields:
Dubai and Abu Dhabi offer rental yields of 6–10%, with some areas hitting 10%, outpacing other global cities. London averages 2–4%, New York 2.9–3.3%, and Singapore 2–3.8%. Taraf Holding’s projects, like Luce in Dubai’s Jumeirah Village Circle, are built for high-demand rentals.
| City |
Rental Yields (Average) |
| Dubai |
~6-10% (depending on property type and area, some areas offer higher yields) |
| Abu Dhabi |
~5-7% (similar to Dubai, varying by area) |
| London |
~2.5-4% (generally lower than UAE cities) |
| New York |
~2.9-3.5% (generally lower due to high property values) |
| Hong Kong |
~2-3% (among the lowest due to extremely high property values) |
| Singapore |
~2-3.8% (lower due to high property values and cooling measures) |
| Delhi |
~2-4% (varies, lower than UAE cities, but increasing) |
| Mumbai |
~2-4% (similar to Delhi) |
| Bangalore |
~3.5-5% (higher in peripherals due to lower entry prices) |
| Riyadh |
Generally 5-7% (strong yields driven by demand) |
| Jeddah |
Comparable to Riyadh, likely 5-7% |
Why It Matters:
Higher yields mean your property generates more income, perfect for cash-flow investors.
2. Property Prices:
Dubai’s average price per square foot is around $550, and Abu Dhabi’s closer to $450 in areas like Al Reem Island. Compare that to London ($1,500+), New York ($1,700+), Hong Kong ($2,000+), or Singapore ($1,200+). You can snag a sleek apartment or villa with Taraf Holding without the sticker shock of other cities.
| City |
Property Prices (Indicative Price per Sq. Ft. / General Trend) |
| Dubai |
High. Recent surge in prices, particularly luxury properties. (e.g., Palm Jumeirah, Business Bay, Downtown Dubai). Average price per sq. ft. around $550, but much higher in prime areas. |
| Abu Dhabi |
Strong growth in both apartment and villa prices. Mid-market apartments saw increases of up to 4%, luxury properties 2-7%. Areas like Yas Island seeing significant appreciation. |
| London |
Prices in prime central London saw slight declines (-0.7% quarterly, -2.6% annually in Q1 2025). Outer London saw modest growth (0.1% quarterly, 0.7% annually). Prices are still significantly high. |
| New York |
High. Median home prices in NYC up 2.1% YoY in Q1 2025. Manhattan median price $1.23 million (up 16.7% YoY), Brooklyn $875,000 (up 3.8% YoY). Price per sq. ft. averages around $880, but varies widely. |
| Hong Kong |
Extremely high. Overall home prices in Q1 2025 continued to trend down slightly (-1.7% QoQ for mass market), though transaction volumes increased for smaller units due to stamp duty relaxation. |
| Singapore |
High. Public and private property price growth showed signs of moderation in Q1 2025 (HDB resale prices up 1.5%, private up 0.6% QoQ). |
| Delhi |
Prices increasing significantly, especially in NCR (National Capital Region). Delhi-NCR recorded 18% growth in Q1 2025. Luxury homes seeing strong demand. |
| Mumbai |
Prices are high and trending upwards, especially for premium homes. Property registrations reached a 13-year high for April 2025, with a 4% YoY increase. |
| Bangalore |
Prices expected to keep rising in 2025 (citywide apartment rates ~₹8,000 – ₹10,000 per sq ft). Annual appreciation moderated to 8-10% YoY. |
| Riyadh |
Prices climbing. Overall property values climbed by 5.1% in Q1 2025, with Riyadh leading regional price gains, driven by land and villa appreciation. |
| Jeddah |
Prices increasing due to economic diversification and mega-projects. Grade A office spaces are highly sought after. Land prices around mega-projects increased by 15-30%. |
Why It Matters:
Lower prices let you invest in premium properties or diversify across multiple units.
3. Tax Benefits:
The UAE has no capital gains or rental income taxes, a huge edge over other cities. London charges up to 12% stamp duty and 28% capital gains tax, New York has 1–2% annual property taxes, Hong Kong imposes up to 8.5% stamp duties, and Singapore adds up to 6% buyer’s stamp duty for foreigners.
| City |
Real Estate Tax (Key Considerations) |
| Dubai |
No annual property tax or capital gains tax. Main tax is a 4% DLD (Dubai Land Department) transfer fee on purchase. |
| Abu Dhabi |
No annual property tax or capital gains tax. Similar to Dubai, a DLD transfer fee (typically 2-4%) applies upon purchase. |
| London |
Stamp Duty Land Tax (SDLT): Progressive tax on property purchases, with higher rates for more expensive properties and additional surcharges for second homes and non-residents (up to 15% for non-residents on properties over £1.5m). Council Tax: Annual local government tax based on property value. Capital Gains Tax: Applies on profits from selling property (currently up to 28% for residential property). |
| New York |
Annual Property Tax: Varies significantly by borough, property type, and assessed value (can range from 1-3.9% of assessed value). Mansion Tax: Progressive tax on residential properties sold for $1 million or more (up to 3.9% for properties over $25 million). Transfer Taxes: Various city and state transfer taxes on sale (e.g., NYC Real Property Transfer Tax). |
| Hong Kong |
Stamp Duty: Applies to all property transactions (1.5% to 4.25% depending on price). Special Stamp Duty (SSD): High additional tax if properties are sold within 3 years of purchase (up to 20%). Buyer's Stamp Duty (BSD): 15% for non-residents (recently relaxed/abolished for some categories). Property Tax: 15% on rental income. |
| Singapore |
Buyer's Stamp Duty (BSD): Progressive tax on property purchases (up to 4% for residential). Additional Buyer's Stamp Duty (ABSD): Significantly higher for foreigners (currently 65% for residential properties) and for purchasing multiple properties. Annual Property Tax: Based on the property's annual value, with rates varying for owner-occupied vs. non-owner-occupied properties (4% to 16%). No Capital Gains Tax. |
| Delhi |
Stamp Duty: Varies by state (Delhi: 6% for men, 4% for women). Registration Fees: Additional fee on registration. Property Tax: Annual tax levied by municipal corporations based on property characteristics and location. Capital Gains Tax: Applies on profits from selling property (short-term and long-term rates). |
| Mumbai |
Stamp Duty: Varies by state (Maharashtra: generally 6% including surcharge). Registration Fees: Additional fee on registration. Property Tax: Annual tax levied by municipal corporations. Capital Gains Tax: Applies on profits from selling property. |
| Bangalore |
Stamp Duty: Varies by state (Karnataka: 5% for properties over ₹45 lakhs, 4% for women in some cases). Registration Fees: Additional fee on registration. Property Tax: Annual tax levied by municipal corporations. Capital Gains Tax: Applies on profits from selling property. |
| Riyadh |
No annual property tax. There is a 5% Real Estate Transaction Tax (RETT) on property sales. |
| Jeddah |
No annual property tax. Similar to Riyadh, a 5% Real Estate Transaction Tax (RETT) on property sales. |
Why It Matters:
Zero taxes mean you keep more of your profits, boosting your ROI.
4. Ownership Rules:
Dubai and Abu Dhabi allow 100% foreign ownership in freehold areas like Palm Jumeirah or Saadiyat Island, with clear rules from RERA and DMT. London and New York are open to foreigners but come with tax headaches. Hong Kong and Singapore pile on extra duties for non-residents.
Why It Matters:
Simple ownership rules make investing hassle-free for global buyers.
5. Residency Perks:
Buy a property over AED 2 million in Dubai or Abu Dhabi, and you can land a 2–10-year residency visa. Other cities like London, New York, Hong Kong, and Singapore don’t offer property-linked residency or require much higher investments. Taraf Holding’s high-value projects, like Cello, streamline visa eligibility.
Why It Matters:
A visa adds value for long-term business or lifestyle plans.
6. Market Growth:
Dubai’s prime areas see 5–7% annual price growth, outpacing London’s 1–3% and New York’s 2–4%. Abu Dhabi’s growth is steady at 4–6% in hubs like Yas Island. Hong Kong and Singapore grow at 3–5% but at higher costs.
| City |
Avg. Annual Price Growth |
| Dubai |
5–7% |
| Abu Dhabi |
4–6% |
| London |
1–3% |
| New York |
2–4% |
| Hong Kong |
3–5% |
| Singapore |
3–5% |
Why It Matters:
Higher growth means your investment’s value climbs faster.
7. Lifestyle and Infrastructure:
Dubai’s futuristic vibe and Abu Dhabi’s cultural depth match or beat London, New York, Hong Kong, and Singapore. With world-class schools, hospitals, and transport, the UAE’s infrastructure is a draw for tenants and buyers.
Why It Matters:
A great lifestyle drives demand and property value.
8. Financing Options:
UAE banks offer mortgages with 20–50% down payments, often at better rates than New York or London. Hong Kong and Singapore have stricter rules for foreigners.
Why It Matters:
Accessible loans make investing easier without full cash upfront.
Why Choose Taraf Holding?
Taraf Holding offers luxury properties in Dubai and Abu Dhabi’s best spots, from Business Bay apartments to Yas Island villas. Their projects blend style, sustainability, and serious returns. Visit https://www.tarafholding.com/ to check them out.
Wrap-Up
Dubai and Abu Dhabi outshine London, New York, Hong Kong, and Singapore with higher yields, lower prices, no taxes, and residency perks. Taraf Holding’s premium properties make it a smart choice for global investors. Head to https://www.tarafholding.com/ to start your investment journey.
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