Property Prices in Dubai in Comparison with Other Developed Countries

Presently, the price of property in Dubai is relatively lower than that of in other developed countries. If compared with the price of properties in any well developed city of UK, we can see that the property prices in Dubai are around four times lesser.

We can buy a 5-bedroom, 4-bathroom villa in Dubai in an amount with which we can buy a one-bedroom apartment in UK. While considering the yield from rent, again Dubai earns more marks than UK. In UK, we cannot expect more than 5% of the price from rent. But in Dubai, without doubt we can assure 8 to 9.5 % rental yield according to the present market trends.

The most important reason of such a favorable atmosphere comes from the fact that there is currently no income tax or capital gains tax applicable on property sales or rentals in Dubai.

In case of Dubai, another favorable factor has been added. The inflation in building costs has just started and so the chances for an increase in prices are greater. This is mainly because the property boom has just shot up in Dubai and it will definitely last for the next five years. But this is not the case with other countries like in UK. There the boom has already reached a mature stage and we cannot expect a lasting hike in prices.