📈 Dubai Ranks First Globally in City Center Property Price Growth
Dubai has emerged as the world’s fastest-growing city for central real estate prices, according to Deutsche Bank’s latest “Mapping the World’s Prices – 2025” report. The city’s property prices in its urban core have surged by an extraordinary 122% since 2020, outpacing all other global cities.
The average price per square meter for an apartment in the city center now stands at $7,602, reflecting Dubai’s transformation into a top-tier international housing market. Over the last five years, Dubai climbed 15 places to rank 37th globally in terms of city center property values.
🏘️ Regional Comparison: Where Dubai Stands
In comparison, city center apartment prices in Abu Dhabi sit at $5,977 per sqm, up 64% since 2020. Other cities like Doha ($4,944), Riyadh ($2,664), and Istanbul ($3,036) still remain relatively affordable compared to Dubai.
Meanwhile, traditional property leaders like Hong Kong have seen a 20% decline, although it still holds the top spot at $25,946 per sqm, followed by Zurich, Singapore, Seoul, and Geneva.
📊 Factors Behind Dubai’s Property Boom
Dubai’s impressive growth is fueled by a mix of strategic reforms and investor-friendly policies:
Expansion of the 10-year Golden Visa program
Residency options for remote workers and retirees
Strong economic diversification beyond oil
Growing interest from global investors seeking tax efficiency and safety
These developments have significantly improved demand, especially in premium areas of the city.
🔮 What Lies Ahead for Dubai Real Estate?
A recent Fitch Ratings report predicts a moderate correction in the second half of 2025, with a potential 15% dip in home prices. However, real estate analysts believe Dubai’s long-term outlook remains strong due to continuous population growth and a mature market structure.
💵 Dubai Among World’s Most Expensive for Renting
The Deutsche Bank report also ranked Dubai 10th globally for three-bedroom rental rates in city centers, with average monthly rents at $4,589 — up 49% in recent years. New York tops the list at $8,388, followed by Singapore, Boston, and London.
For one-bedroom city-center apartments, Dubai ranks 8th, with monthly rent averaging $2,401.
💳 Housing Affordability in the Gulf
Dubai, Doha, and Riyadh are among the top 10 cities globally when measuring housing affordability based on mortgage-to-income ratios — indicating high purchasing power relative to property costs in the Gulf.
🌍 Quality of Life and Salaries
In global quality-of-life rankings, Dubai placed 19th thanks to strong purchasing power and safety. With an average monthly salary of $4,064, Dubai ranks 15th globally, reflecting a 35.7% growth over the past five years.
Abu Dhabi ranked just ahead at 18th in quality of life, while Doha and Riyadh followed at 23rd and 31st respectively.
🚗 Cost of Living & Lifestyle Comparisons
Car Ownership: Abu Dhabi is among the top five most expensive cities to own a car due to high duties.
Fuel: Dubai, Doha, and Riyadh are among the world’s most affordable cities for gasoline.
Gym Memberships: Monthly rates average $86 in Dubai.
iPhone Prices: Dubai offers mid-range pricing, more affordable than Europe, but pricier than the US or South Korea.
Internet: The UAE ranks among the most expensive for broadband globally.
How does Dubai compare to other GCC cities in terms of affordability?
Dubai is more expensive than cities like Riyadh and Doha, but offers higher purchasing power, income, and rental returns.
Are rental yields in Dubai still competitive?
Absolutely. Dubai continues to offer rental yields of 7%–9%, among the best globally for prime properties.
Which global cities are still more expensive than Dubai?
Hong Kong, New York, Singapore, and Zurich remain more expensive for both property prices and rental rates.
