Dubai Real Estate is Cheaper than in Europe

Europe has been known for years as a popular region for buying real estate, and now we're saying it: Dubai real estate is cheaper than in Europe. Cities like London, Paris, Berlin, and Barcelona still attract millions of tourists, business travelers, and investors. Yet, the European real estate market is becoming increasingly challenging for private investors. High taxes, rising prices, and low returns make it difficult to find good deals.

Meanwhile, one destination is rapidly gaining ground among European investors: Dubai. And for good reason. Buying property in Dubai is not only easier and more modern, but in many cases, Dubai real estate is also less expensive than in Europe.

And "cheaper" goes beyond the purchase price. It includes tax burden, returns, maintenance costs, purchase structure, and long-term value. In all these areas, Dubai outperforms many European markets.

Let's take a look at why Dubai real estate is so interesting for European investors.

No Taxes on Real Estate in Dubai

One of the biggest advantages of investing in real estate in Dubai is the tax climate. While in Europe you have to deal with transfer tax, annual property tax, income tax on rental income, and wealth tax, Dubai has virtually none of these burdens.

In Dubai:

• you do not pay annual property tax

• there is no capital gains tax on sales

• you do not have to pay tax on rental income

This means you retain a higher return. In countries like the Netherlands, France, or Germany, you can easily lose 30% to 50% of your profit to taxes. In Dubai, that money remains yours. Read more about tax-free living and becoming a resident in Dubai.

Higher Return than in European Cities

A common problem in European cities is low rental yields. In cities like Amsterdam, Paris, or Berlin, the average gross yield is often between 2% and 4%. Subtract taxes and fees, and there's little left.

Dubai, on the other hand, offers rental yields of 7% to 9% net, with significantly lower costs. Areas like JVC, Business Bay, Dubai Marina, Dubai Island, and Arjan are incredibly popular with both tenants and investors. The combination of affordable purchase prices and strong rental demand simply makes returns in Dubai better.

Read more about long- vs short-term rentals and returns at larger vs smaller developers.

Lower Entry Costs, Higher Quality: Dubai Real Estate is Cheaper

Many people think real estate in Dubai is expensive because of its luxurious image. But that's precisely one of the biggest misconceptions. For less than €130,000, you can buy a modern studio apartment, often including a swimming pool, gym, parking, and 24/7 security. Compare that to European capitals, where the same amount can sometimes get you no further than a shoebox outside the city center.

Dubai therefore not only offers a lower entry price, but also more value per square meter. Read more about Real Estate Prices in Dubai.

No Inheritance Tax or Wealth Tax

Are you thinking long-term or about building wealth for your children? Then Dubai is especially interesting. In many European countries, you have to pay up to 40% inheritance tax upon death.

In Dubai? No inheritance tax. No wealth tax. Your assets remain intact and can be passed on smoothly to your heirs.

This makes Dubai real estate particularly suitable for wealth planning or building a property portfolio for the next generation.

Flexible Payment Plans

While in Europe you often have to deal with strict banks, high mortgage requirements and fixed down payments, things work differently in Dubai.

Project developers often offer flexible payment plans, such as:

• low down payment (10% to 20%)

• payment in instalments, sometimes even after delivery

• no interest on the payment plan

You can therefore invest without having to deposit a large amount immediately, which makes Dubai extra accessible for private investors who want to start or expand their portfolio.

Constant Demand for Rentals

Dubai is an international hub. Over 85% of the population consists of expats, and the city welcomes millions of tourists annually. Consequently, there is a constant demand for rental properties, both short-term and long-term.

Unlike many European cities that rely on seasonal tourism, Dubai operates virtually year-round. Whether it's business travelers, holidaymakers, or remote workers, demand remains constant.

Transparant en Internationaal Toegankelijk

Another significant advantage of Dubai's real estate market is its openness to foreign investors. In designated "freehold zones," foreigners can become 100% owners of the property. No intermediary or local partner is required.

The market is well-regulated, with clear rules and a modern legal system. Compared to many European countries – where regulations change quickly or can even be hostile to foreign investors – Dubai offers clarity and confidence.

Conclusion: Dubai Real Estate is Cheaper than Europe

Yes, Dubai is cheaper than Europe. Especially when you consider the bigger picture. Not only are the purchase prices more attractive, but the tax burden is virtually zero, the returns are higher, and the investment process is simpler.

For European investors seeking freedom, returns, and future-proof investments, Dubai will be a logical alternative to traditional European real estate markets in 2025.

Article references: Euro News | Euro Parliament | Bloomberg ME | FT |