Dubai continues to stand out among major global cities for housing affordability with buyers needing significantly fewer years of income to purchase a home compared with many other international markets.
According to UBS Global Real Estate Bubble Index 2026, a Dubai resident earning the average income would need around five years to buy a 60-square-metre apartment near the city centre. The figure is among the shortest recorded across the 23 major cities included in the study.
The difference becomes clear when compared with other major property markets. Buyers in Hong Kong need around 15 years of average income to purchase a similar-sized apartment, while buyers in London need about 11 years. Tokyo, Paris and Seoul also require more than a decade of average income.
Dubai also ranks among the most affordable cities when property prices are compared with rental costs.
UBS estimates that it would take around 16 years of rental income to cover the purchase price of an apartment in Dubai. This is the shortest period recorded in the study, alongside Miami and Sao Paulo.
The difference is significant in cities such as Zurich, where it would take around 46 years of rental income to cover the purchase price. Geneva follows at 40 years.
This comparison highlights the relatively strong relationship between property prices and rental values in Dubai, where high rental costs continue to make homeownership an attractive option for some residents.
Real home prices have fallen back to around mid-2025 levels, while real rents are now below their level a year earlier. In the year to the second quarter of 2026, real home prices increased by 0.4%, while real rents declined by 4%.
Despite the recent moderation, the market has remained active. UBS classified Dubai’s property bubble risk as “elevated”, although it also noted that homeownership remains relatively attractive because of the high cost of renting.
For existing tenants, the recent slowdown in price growth and the availability of price concessions could create more opportunities to move from renting to owning.
UBS noted that, despite higher mortgage rates, Dubai remains one of the few markets where buying a home can still compare favourably with renting.
The road ahead
While the market has moved away from the rapid growth seen in previous years, Dubai’s comparatively lower cost of homeownership and strong rental market continue to distinguish it from many other major global cities.
At One Investments, we see developments like this as a strong reminder of the value of forward planning. We prioritise understanding our investors objectives and identifying opportunities that match their vision, ensuring a careful balance between potential growth and security.
