Market Trends & Analysis: Why Dubai Is Still More Affordable Than London & New York

Dubai’s modern city center exemplifies its explosive growth but surprisingly affordable luxury market. 

Globally, London and New York rank among the world’s most expensive property markets.     By contrast, even after recent rallies, Dubai’s prime residential prices remain far lower.     For instance, Savills data show New York averages about $2,590 per sq ft , London about $1,920 per sq ft , while Dubai stands at only $930 per sq ft .     

  In other words, global media report Dubai real estate is roughly four times cheaper per square foot than London’s or New York’s .     This massive price gap is a key driver for international buyers:     a luxury home in Dubai can be an entry point asset in a high value market. 

By comparison, price growth trends have also diverged sharply.     Knight Frank ’s Q1 2025 index shows Dubai’s prime prices soaring +16.4% YoY , the second‑highest in the world, whereas London and New York barely budged     .     In that report, Dubai is ranked #2 globally (16.4%), while New York clocks just +0.6% and London actually fell (~‑1.3%)     .     This means luxury buyers in Dubai not only enjoy lower base prices but have also seen exceptional recent growth.     By contrast, entrenched markets like London and New York have had muted or negative price changes as high interest rates and local factors (tax burdens, restrictive regulations, slower wage growth) dampen demand. 

Global Investor Demand:     Record inflows of wealthy buyers reinforce Dubai’s appeal.     Cushman & Wakefield reports an unprecedented “influx of millionaires” into Dubai – the largest in the world – driving ultra‑prime sales to record highs .     (For perspective, Dubai’s 2024 sales volumes hit AED 367 billion, a 32% jump, per industry data.)     Inflows are drawn by 0% income/capital tax regimes and investor‑friendly residency (e.g. Golden Visas for big spenders). 

A recent survey notes that “Dubai is expected to attract more millionaires than anywhere in the world this year” (Bloomberg via industry sources).     

  High profile buyers find Dubai a luxury alternative to crowded, costly Western cities.     With strong population growth and job creation, Dubai’s demand remains robust so much so that even with supply ramping up, Cushman forecasts 42,000+ new units in 2025 , only modestly cooling double-digit price growth . 

• Prices vs. Income:     Dubai’s lower price base also means easier affordability.     Mortgage or rental burdens in Dubai tend to be a smaller fraction of income than in London/NY.     

A salary that would barely cover a small London flat can secure a spacious Dubai apartment.     Coupled with a currency peg to the US dollar (mitigating forex risk), many see Dubai as an “affordable dollar hedge. 

• Taxes & Costs:     Unlike London/NY, Dubai levies no personal income, capital gains, or property taxes.     Buyers save on stamp duties and inheritance taxes that heavily affect Western purchases.     Typical realtor commissions in Dubai are also lower (often capped at ~2%), reducing transaction costs. 

• Quality of Life:     Dubai offers luxury living with comparatively low daily costs (no sales tax and subsidized fuel/utility costs).     Even factoring the added value of amenities –     world‑class infrastructure, safety, cosmopolitan culture – analysts emphasize Dubai’s “comparatively low cost of living” combined with luxury appeal .  
This means international families and retirees get more house for their money in Dubai, further boosting demand. 

Citations of recent market reports emphasize Dubai’s value proposition.    For example, Savills notes Dubai’s prime luxury market growth at +17% recently, and “the market is still relatively competitively priced by global standards” . 

Knight Frank’s research (above) similarly ranks Dubai as a top-performing prime city, while traditionally costly markets like London show flat or declining trends. 

  Even the international press (Bloomberg/Yahoo Finance) highlights that “Dubai property is more affordable than London, New York” , citing Haus & Haus sales director Clementine Munro on Bloomberg’s Middle East show.     Her point echoes the data: with blended price ~$350/sqft (versus $1,400/sqft in London), Dubai homes represent a bargain for global buyers. 

Key Takeaways for Investors:     The confluence of lower prices, tax advantages, and strong growth makes Dubai uniquely attractive.     In bullet form, Dubai’s market offers: 

• Much lower entry prices: Prime luxury costs only  $900–1000/sqft , versus $1900–2600 in London/NY. 

• Tax‐friendly regime: Zero property/capital gains taxes and lucrative residency visas for big investors. 

• High capital growth: Double-digit recent price jumps (e.g. +18–20% YoY) far outperform London/NY     . 

• Depth of market: A growing inventory of new projects, so buyers have options (villa and high-rise stock are rising).     Still, supply strains mean more growth ahead (Cushman sees 42K homes delivered in 2025, but 2024 sales outpaced supply ). 

• Currency and stability: AED’s peg to USD protects buyers from FX volatility, and Dubai’s inflation has been moderate. 

Bottom Line: Dubai’s real estate remains significantly more affordable on a global scale.     Compared to crowded Western capitals, investors can enter the market at a lower price point while enjoying higher growth and tax perks.     The latest data – from Bloomberg and Yahoo coverage to Knight Frank and Cushman reports – all underscore the story: Dubai delivers luxury and strong returns without the ultra‑high price tag of London or New York .     For international luxury buyers, Dubai offers an unprecedented value proposition. 

At Dubairealestateprincess, we help savvy investors navigate these opportunities.     We offer free consultation to guide you through Dubai’s market and find the right property at the right price.     Visit Dubairealestateprincess.com or contact us today to learn how we can assist your investment in Dubai real estate. 

Sources: Industry reports and data from Knight Frank and Cushman & Wakefield     ; market analysis from Black Brick/Savills . These confirm Dubai’s relatively low prices and strong growth versus London and New York.