Dubai is often seen as a city of luxury and extravagance—home to towering skyscrapers, high-end shopping, and a flashy lifestyle. Because of this image, many people assume that Dubai is prohibitively expensive. But is that really the case? When we dig deeper and compare Dubai to major cities in Europe, especially in terms of real estate and value for money, the results might surprise you.
Yes, daily expenses like luxury dining or imported goods can be pricey. However, when it comes to real estate, Dubai offers some of the best value globally, especially for investors or expats looking to settle in a world-class city.
Comparison with other cities
Let’s look at the numbers. The average price per square foot in Dubai is around $438, compared to $939 in London and $960 in Paris (The Dubai Life). This means that for the same budget, buyers can get more than twice the space in Dubai than they would in many European capitals. For example, $500,000 can buy around 1,141 sq. ft in Dubai, while only around 520–530 sq. ft in Paris or London.
Additional Perks
In addition, many properties in Dubai come with premium amenities such as swimming pools, gyms, private parking, and concierge services, all included in the property price—something that would be considered a luxury add-on in most European cities. New developments also tend to be modern, well-maintained, and designed for convenience and comfort.
Moreover, Dubai offers higher rental yields, typically ranging from 5% to 9%, compared to 2% to 4% in most European cities (Elita Homes). Combine that with Dubai’s zero income tax, no capital gains tax, and no property tax, and the financial advantages become even clearer. In Europe, rental income is often heavily taxed, eating into your returns.
It’s also important to highlight Dubai’s investor-friendly policies, such as long-term visas linked to property ownership, a stable currency pegged to the US dollar, and strong government support for infrastructure and innovation. These factors continue to boost Dubai’s position as a reliable and profitable real estate market.
Beyond numbers, Dubai delivers on quality of life—modern infrastructure, safety, year-round sunshine, and a dynamic, multicultural community. It's a fast-evolving global hub that continues to attract talent, entrepreneurs, and investors from around the world.