Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
Our guide will help compare New York and Dubai to make the right investment decisions in those urban areas. New York Vs. Dubai: That is the question! It’s common for megacities to be quite similar at first glance: the same tall buildings, chaotic traffic, and lots of opportunities. Two cities are often compared to each other — it’s Dubai and New York. They both feature skyscrapers, prevailing English speakers, good job options, and an excellent investing environment.
New York, United States, is probably the first city that comes to mind when considering investments, and however, Dubai is catching up quickly. Every year, this city attracts more and more tourists and investors, and residential real estate is a big part of investment opportunities in both cities.
This article is for you if you are still deciding whether to buy property in Dubai or New York.
New York is one of the most famous cities in the world. It is one of the cultural, financial, and media capitals, with over 8.5 million inhabitants. It is an important center for international diplomacy and cultural relations.
People from all over the world come to live in, or at least visit, this place. That’s why it’s an attractive opportunity for commercial estate investment.
Moreover, the city is the center of the New York metropolitan area, the most extensive metro area in the world by urban landmass. It is called New York-Newark-Jersey City, and in 2021 was populated by almost 20 million people. This area is home to many people born outside the USA, so it’s a place of opportunities for real estate investors from all national and cultural backgrounds.
According to the Versus portal, New York has many benefits compared to Dubai. It has a higher average salary rate, developed infrastructure that can be used for cars and pedestrians, and many facilities like gyms, public transport, and amazing parks with the huge Central Park in the middle. The number of billionaires is also higher in New York.
Many people enjoy warm Dubai weather, but it misses the beauty of ever-changing seasons, which New York is full of. The benefits can be found in any season, when the heat sometimes becomes unbearable in Dubai, forcing people to stay in their cars and apartments.
Overall, there are a lot of pros to living in the City That Never Sleeps. They include:
However, with excellent living standards and high-paying jobs come disadvantages like:
The UAE is known for its investor-friendly practices, especially for reduced taxes. Investments in Dubai are not subject to annual real estate tax, income tax, capital gains tax, rental income tax, or value-added tax (VAT). The country even has tax-free zones that have special favorable tax regimes. This allows investors to allocate a more extensive financial portfolio to purchase real estate and obtain a higher return.
The Versus portal says that Dubai is safer than New York, and it is much more affordable for the middle class — it has a lower cost of living and rental prices. The quality index of living in Dubai is almost two times higher than in NY, and the unemployment rates are much lower.
There are many colleges, universities, and excellent beaches that New York lacks. Dubai also has a higher position in the “The world’s best city to live in” ranking. The warm weather allows for swimming and sunbathing all year long.
On average, real estate in Dubai is more affordable than in New York and grows in price quickly. The city also doesn’t have rent control, so you can decide what price to put for an apartment and rent it out freely.
There are pros and cons to living and investing in Dubai as well. The pros include:
The cons of living in this developed city include the following:
While you find contrasts in NYC, from the tall skyscrapers to the tiny winy building blocks Downtown, Dubai has done away with any of these contrasts, all in the name of development.
NYC’s art and culture scene is vibrant, and it’s a happening place. While Dubai does get some top bill performers for concerts, there is no underground scene, and a parallel art scene does not exist beyond a couple of galleries (Serkal in Al Qouz and Bastakiyah are trying hard to get off the ground).
You will find diversity in NYC and walk into people from different backgrounds and income levels on the street, at the food cart, or in the subway. Dubai is a city split into the higher end of income, who have it all and can splurge, and then you have the blue-collar workers.
Those toil in the sun to build the tall buildings and are then transported in buses to their ‘labor camps’ on the city outskirts to live in rooms where they share a room with 6-8 other roommates.
You will never see any of these men within city limits except within the boundaries of a construction site.
Overall, the investment sector in these two great cities is thriving. Now might be the best time to buy real estate properties. Dubai and NY attract many people and have a high quality of life. In such cases, it is better to weigh other factors — like the size of your capital and requirements for obtaining citizenship (if you plan to get one).
The climate also plays a role here, so make sure you choose the city you’ll be able to enjoy for a long time.