Finding out where you want to purchase your next property can be tough. Whether you’re buying investment property to rent out and make a profit from, or looking to find your dream home, knowing where to search is half the battle.
Nowadays, if you are searching for cities famous for expensive real estate, Dubai is appearing alongside cities like Hong Kong, New York, and London.
Known for its luxury properties and record-breaking transactions. But how does the city measure up on the list of the world’s most expensive real estate markets?
The absolute all-time giants: The most expensive cities
In real estate, some cities tend to consistently claim the top spots on the lists of most expensive markets year after year. These goldmine cities have long enjoyed a reputation for luxury, prestige, and eye-watering price tags:
- Hong Kong: Frequently regarded as the costliest real estate market on the planet, Hong Kong’s property highs are No. 1. Even small apartments can run millions, and space is at an absolute premium.
- New York City: From penthouses with views of Central Park to Brooklyn brownstones, NYC’s market is among the most diverse — and most expensive. Its global centers that guarantee demand is sky-high.
- London: A series of timeless estates and ultra-modern developments have London in the running each time. Neighborhoods such as Kensington and Mayfair are nearly synonymous with wealth.
These cities have provided the luxury real estate gold standard for decades, but Dubai is making its way up the list fast, proving that luxury and progress can go hand in hand.
Dubai’s real estate market: A rising star
In the world of real estate, saying that “you get what you pay for” applies particularly well in the world’s most expensive cities.
Some worldwide hotspots have exploded onto the scene for the luxury they offer and the breathtaking property costs within their real estate market.
These cities set the standard for stylish living — assuming you have the cash, of course.
But if you are thinking about Dubai as a city to invest in, and you want to know more about it, so you make sure you are on the right track, here are some data to help you make up your mind.
According to Gulf Business, Sydney and Dubai, both share the top spot in 2024, boosted by increases in their high-net-worth populations.
Dubai’s real estate market is projected to experience continued growth in 2025, with residential property prices expected to rise between 5% and 10%.
This growth is driven by strong demand for off-plan properties and the city’s strategic initiatives to attract global talent and investment.
In terms of supply, the market anticipates an increase of approximately 182,000 housing units over 2025 and 2026, as many properties pre-sold in previous years reach completion. This includes an expected 76,000 units in 2025 alone.
All this coincides with a recent weaker sentiment tied to elevated interest rates and a challenging economic climate which is predicted to bring price declines in prime residential markets in Los Angeles, New York, San Francisco, Seoul, London, Singapore, and Hong Kong.
Why Dubai stands out
According to a recent report by Knight Frank, a globally recognized authority in real estate insights and statistics, their data highlights the fact that Dubai has unique offerings.
its tax-free benefits and high rental yields are making it a standout choice among in-demand real estate markets in the world, with high-end property sales rise on overseas demand.
Beyond what’s already mentioned, real drivers include reasons like:
- Architectural marvels: Dubai represent luxury and creativity with record-breaking structures like the Burj Khalifa and the man-made Palm Jumeirah.
- Tax-free benefits: Unlike cities like London and New York, Dubai offers tax-free incentives, making it one of the best markets for real estate investment.
- Lifestyle appeal: Dubai ranks 12th globally in Julius Baer’s Global Wealth and Lifestyle Report as the ‘cost of living’ remains relatively competitive compared to major global cities along with year-round sunshine.
- Strategic location: being in crossroads of Asia, Africa, and Europe, connecting east and west, Dubai’s accessibility adds to its appeal to international investors.
The numbers don’t lie: Here’s where Dubai shines
Here are some price growth and comparisons with other markets:
- Rental growth: The Dubai real estate market has displayed exceptional resilience and growth moving into 2025.
In the same quarter of 2024, the city recorded its highest quarterly sales performance in history at above AED 142.7 billion. This increase is due to rising demand from domestic and foreign investors.
Dubai is expected to see a 5% increase in prime real estate prices in 2025, while other cities like Singapore (0%), Hong Kong (0%), Miami (0%), Sydney (+1%), London (+2%), Paris (+2.5%), Geneva (+3%), New York (+3%), and Los Angeles (-2%) will experience varied growth trends..
- Yields: yields: Knight Frank reports that prime residential properties in Dubai offer yields of approximately 4.8%, compared to a global average of 3.0%.
- Transaction costs: Knight Frank notes that the total costs associated with buying, holding, and selling property in Dubai are less than 10% of the purchase price, whereas other major cities can have transaction costs of around 15%.
- Government initiatives: Dubai’s Golden Visa program offers a 10-year residency to investors who deposit at least AED 2 million (approximately $545,000) in an accredited UAE investment fund.
In contrast, the U.S. EB-5 Immigrant Investor Program requires a minimum investment of $1.05 million in a new commercial enterprise. UK’s now-closed tier 1 (Investor) visa required a minimum investment of £2 million (about $2.6 million).
Final thoughts
While Dubai may not match the price per square foot of markets like Hong Kong or New York, it has jumped up the ladder and is now presented among the most expensive real estate markets.
it is widely known for its investor-friendly policies, property tax-free, low transaction fees, and straightforward processes for foreign investors.
Plus, when you compare the costs of buying, holding, and selling property, Dubai’s under-10% transaction costs are a breath of fresh air compared to the 15%+ seen in other top-tier cities.
For investors seeking growth and returns without sky-high overheads, Dubai offers a golden middle ground—luxury, value, and opportunity all wrapped into one dynamic package.
Explore Dubai with Trusted Property Partners
So, if you’re ready to invest in one of the world’s most exciting real estate markets, Mira Developments and Mira Estate are here to help.
At Mira Developments, we offer a portfolio of premium, design-driven properties, crafted for those who seek both luxury and long-term value.
And with Mira Estate, our expert real estate advisory team helps you navigate Dubai’s dynamic property landscape — from selecting the right project by top developers to completing your transaction with full confidence.
Dubai is an opportunity. Are you ready to seize it?
