Comparing Apartment Prices Dubai vs Australia
The comparison of real estate markets of different locations is crucial when thinking of investing in a property. The findings from this comparison of Dubai in the UAE with major cities in Australia reveal that the cost of apartments, returns from rental, and the potential for investment is completely different.
Price per Square Foot
Another great difference that can be spotted between the two markets is the price per square foot. In the city center of Dubai, it is around Away from the city center, Dubai is much cheaper at AED 985.93 (AUD 402.54) while Sydney costs AED 3,185.62 (AUD 1300.63).
Rental Yields
The yields in Dubai are relatively better than Sydney, hence the city offers great returns for property investors looking for a regular income. Dubai has the highest gross rental yields at about 9.89% in the city center than Sydney with a 3.26% gross yield. Beyond the CBD, Dubai is still much more attractive with a yield of 10.83% compared to Sydney’s 3.38%.
Rental Prices
Rental prices for apartments also vary significantly between the two cities. In Dubai’s city center, a one-bedroom apartment rents for about AED 7,927.36 (AUD 3,236.60) monthly, while in Sydney, it is slightly higher at AED 8,069.83 (AUD 3,294.76). However, for a three-bedroom apartment in the city center, Dubai is cheaper at AED 14,937.02 (AUD 6,098.51) compared to Sydney’s AED 16,036.00 (AUD 6,547.21). Outside the city center, Dubai’s rents for three-bedroom apartments are higher, at AED 10,375.00 (AUD 4,235.92) versus Sydney’s AED 9,120.49 (AUD 3,723.73).
Cost of Living
However, besides the property prices, the standard of living in Dubai is relatively cheaper than that in Sydney. For instance, transportation fees, food, and eating out are cheaper in Dubai than in other countries. A one way ticket costs around AED 7 (AUD 2.87) in Dubai while in Sydney, it will cost about AED 12.18 (AUD 5). Furthermore, essential needs such as rent for a one bedroom apartment in the city center ranges from $500 to $700, and basic utilities for a standard apartment are almost similar with a little difference depending on the consumer’s choice and services.
Investment Climate
It is a favorable environment for investors because there is no property tax, and no capital gains tax, and rental income is not subject to income tax. In contrast, Australia has higher personal income taxes and other taxes on properties that could have implication on the net income on real estate investments. In addition, it is well positioned, has a stable economy, as well as high rental yields to make it an investment destination.
Australian investors are also well placed to invest in Dubai property because it is cheaper, has better rental returns and offers more tax efficient environments. However, Sydney is most likely to retain its status as a major market but with increased costs and relatively lower yields on