Yet property markets in each city take distinctly different shapes. So if you had $1 million to invest, which destination would allow you to maximize your buying power? This in-depth analysis compares exactly how much prime living space the budget buys in Dubai versus Singapore.
Dubai Real Estate Market Overview
Thanks to high skyscrapers like the Burj Khalifa , Dubai has cemented its status as the archetypal modern Arabian metropolis. It’s a city seemingly custom-built for lavish property investment, with man-made oceanfront communities, swanky urban high-rises, and sleek architectural icons around every corner.
Recent data highlights the health of Dubai’s property market:
- Prime sales prices up 20.5% year-over-year
- Transaction volumes increased 21% compared to 2023
- 85,999 apartments and 21,230 villas are currently under construction, with plans for handover by 2028
Areas like Downtown Dubai , Dubai Marina, Palm Jumeirah , and Emirates Hills anchor the top end of the market. But developers continue building high-end homes in new communities as the population expands.
Dubai Prime Property Prices
To analyze affordability, we first need to clarify the definition of a prime or luxury home in Dubai. While highly subjective, properties in the top 20 - 25% of values in a given area generally classify as prime real estate.
Based on average sale prices for elite neighborhoods, a baseline emerges:
| Apartment Focus Area | Avg. Price Per Sq. Ft. | Villa Focus Area | Avg. Price Per Sq. Ft. |
|---|---|---|---|
| Dubai Marina | AED 2,031 | Arabian Ranches | AED 1,713 |
| Jumeirah Village Circle (JVC) | AED 1,271 | The Springs | AED 1,671 |
| Business Bay | AED 2,243 | Dubai Hills Estate | AED 2,403 |
| Downtown Dubai | AED 3,003 | DAMAC Hills 2 | AED 862 |
| Jumeirah Lake Towers (JLT) | AED 1,562 | (Akoya by DAMAC) Jumeirah Village Circle (JVC) | AED 1,134 |
Singapore Real Estate Market Overview
Consistently appearing atop quality of life indices, Singapore blends bustling commerce with lush greenery and superb infrastructure. Its physical size doesn’t directly correlate to economic might or property demand.
Market tailwinds stay strong, buoyed by foreign and domestic investors:
- Private home prices up 4.9% in 2022
- Rental prices rising 3.7%
- Record sales seen for luxury condos
- 17,100 units (including ECs) are expected to be completed in 2024 and 2025
Within its limited boundaries, Singapore’s Core Central Region (CCR) contains the most prestigious addresses. But regulatory cooling measures introduced in 2023 may impact short term price trends.
Singapore prime property prices
The CCR covers postal districts 9, 10 and 11:
- District 9 - Orchard Road, River Valley, and Dhoby Ghaut
- District 10 - Ardmore, Balmoral, Bukit Timah, Grange Road, Holland Road, Orchard Boulevard, Tanglin
- District 11 - Watten Estate, Novena, Newton
Recent prime prices per square foot in these areas:
- District 9: $2,500 psf
- District 10: $2,700 psf
- District 11: $2,000 psf
| Region | Average Price/Sq. Foot |
|---|---|
| Core Central Region | $2,202.76 |
| Rest of Central Region | $2,128.73 |
| Outside Central Region | $1,631.63 |
$1 Million - What It Buys in Both Real Estate Markets
Dubai
Lets consider Downtown Dubai, the core heart of Dubai. The average price per sq. ft. is AED 3,003 which is equal to $817. You have $ 1 million in your pocket. So you can get $1000000/ $ 817 = 1,223 sqft of luxury living space. This is equal to 2 or 3-bedroom apartment in Downtown, or similar top locale.
Not a massive home by any means but it’s very comfortable, especially for a single professional or couple. And you’d enjoy full access to world-class amenities within an elite development. If you go a little away from core dubai, you get more space, like 4 to 5-bedroom townhouses or villas, too.
Singapore
With a per square foot budget of $2,200 psf, $1 million affords you 450 sqft of prime property in Singapore’s CCR. Most likely, that means a studio, or 1 bedroom unit.
You’ll still enjoy a premier neighborhood, resort-style facilities, and a reputable developer. Yet for the same $1 million expenditure as Dubai, your living space shrinks by nearly 64%. That could prove challenging for a family.
Recent Projects by Each Market
Dubai Market
Binghatti Hills
Binghatti Hills features studios and 1-2 bed apartments plus luxury suites, priced from AED 777,777 upwards. With 1666 units, the tower overlooks Dubai Science Park and has views of Downtown Dubai’s skyline. Unit sizes range from cozy 446 sqft studios to spacious 4,200 sqft suites.
Amenities include a sky pool, gym, restaurant, retail stores and Binghatti’s signature avantgarde design. Attainable payment plans are offered including 20% down payment and 30% post-completion. Completion is expected by June 2026.
Tiger Sky Tower
Soaring 122 floors next to Dubai’s Tiger Woods golf course, Tiger Sky Tower comprises 1 to 4 bedroom apartments plus premium penthouses. Apartment sizes span 873 to 2,973 sqft, with prices starting at AED 2.2 million, which is less than $1 million.
The luxury development features unmatched amenities like a glass observation deck, infinity pool, fully equipped gym, sauna, outdoor yoga deck, and more. Tiger Sky Tower enables buying affordable luxury near Al Furjan and Discovery Gardens.
Fairway Residences
Fairway Residences offers an affordable entry point to Dubailand’s famous sports City at prices from AED 585,000. Mix of studio, 1, 2 and 3 bedroom apartments measuring 420 to 1,830 sqft are available.
The family-friendly development is located alongside Dubai Sports City. Fairway Residences can access Dubai Parks, Global Village, and Al Maktoum International Airport.
Jade Tower
Jade Tower comprises a contemporary studio and 1- and 2-bedroom apartments. Located in Dubailand’s Majan community, units measure 372 to 1,319 sqft with prices starting at AED 535,000 - an affordable investment opportunity.
Residents can enjoy Majan Park, retail stores, cafes, healthcare facilities and educational institutes in the neighborhood. Jade Tower enables buying into an up-and-coming area.
The Valley Phase 2
The Valley Phase 2 extends The valley’s flagship development - waterfront-living community popular with families and professionals.
3 to 4-bedroom townhouses and villas are available, surrounded by lush green spaces with Dubai Hills Park and golf courses nearby. Homes are priced from AED 2.48 million upwards. Likely to meet the budget below the AED 3.6 million or $ 1 million threshold.
Natura 2 at Damac Hills 2
Natura 2 at Damac Hills 2 comprises 4 bedroom townhouses, surrounded by green spaces with views of Dubai’s skyline. Details and prices are upcoming, but units currently start from AED1.8 M.
Nature-inspired living near Dubai Production City and Dubai Investment Park. Facilities include retail stores, fitness centers, swimming pools, cafes and landscaped central park.
Singapore Market
The Lincoln Modern
- Studio and 1-bedroom units between 431 - 506 sqft
- Located at 39 Namly Ave, District 10
- Priced from $858,000
- Minutes to Stevens and Botanic Gardens MRT
Seaside Residences
- 1 and 2-bedroom units from 463 - 969 sqft
- Situated in Siglap near East Coast Park
- Prices starting at $998,000
- Walking distance to Siglap and Parkway Parade
Treasure at Tampines
- 2 and 3-bedroom units between 624 - 947 sqft
- Massive development with wide facilities
- Pricing from $680,000
- Right beside Tampines MRT and bus interchange
Parc Esta
- 1 to 3-bedroom units from 431 - 958 sqft
- Excellent layouts and balcony space
- Prices starting at $960,000
- Minutes to Eunos and Paya Lebar MRT
The Esparis
- Studio to 2-bedroom units between 431 - 807 sqft
- Punggol waterway views
- Priced from $780,000
- Close to Punggol MRT and Waterway Point Mall
Dubai Vs Singapore Regarding Value Index
Based purely on purchase price relative to living area, Dubai clearly stretches your dollar substantially further in the luxury category. Prime properties come with far fewer space compromises, even in posh downtown districts just minutes from incredible beaches.
That said, Singapore real estate functions as more of a long-term equity investment anchored by the country’s stability and expanding economy. Homes in a safe financial hub often become family heirlooms. And you probably won’t find better urban infrastructure or amenities anywhere in the region.
So, determining where to park your $1 million depends partly on individual priorities - do you want to maximize immediate living enjoyment or hold high-end property for the foreseeable future?
Of course capital gains and rental yields also impact outcomes for pure investment buyers. But in terms of sheer upfront purchasing power, Dubai wins this housing affordability battle.
Other Factors Influencing Affordability
When analyzing Dubai property versus Singapore real estate, upfront list prices only reveal part of the affordability equation. Variables like taxes, financing costs, fees, and carrying expenses matter too.
Taxes
Dubai’s shining star remains its tax-friendly environment. The country levies no personal or income taxes. And with property purchases, foreigners incur no taxation either over the long run. That keeps the net costs basis down.
By contrast, Singapore imposes stamp duties up to nearly 20% on the luxury property segment.
And if you someday sell your home for a windfall profit, that large capital gain gets taxed also per progressive rates topping out over 22%. So carrying costs could multiply with prime Singapore real estate. Here is a summary of Dubai real estate vs Singapore real estate regarding taxation. This taxation heavily impacts property prices.
| City | Property Tax | Income Tax (Individual) | Income Tax (Corp) | Capital Gains Tax | VAT (Sales Tax) |
|---|---|---|---|---|---|
| Dubai | 0% | 0% | Generally 0% (exceptions in specific free zones) | 0% | 5% |
| Singapore | Progressive rates up to 32% (ownership structure) | Progressive rates up to 22% | 17% flat rate | 0% | 9% |
Financing Costs
In Dubai, foreigners frequently qualify for 60-80% loan-to-value mortgages at competitive rates - often between 4-6% on average currently. That allows stretching budgets to enter luxury segments that might otherwise prove unattainable.
However in Singapore, recent cooling measures now limit mortgage financing to just 15% loan-to-value ratios for second homes and 30% on first residences. And you’ll likely pay anywhere from 3-5% in interest these days. Less leverage means more budget pressure.
Fees
When purchasing property in Dubai, the primary added fees include 4% Dubai Land Department registration charges and maintenance fees billed monthly or annually. Very transparent and consistent.
Whereas Singapore levies hefty Additional Buyer’s Stamp Duties that essentially function as luxury taxes on top tier properties. Plus ongoing property taxes add up fast. So while listed prices appear aligned, actual housing costs over time are higher in Singapore than Dubai after incorporating taxes and administrative expenses. That tightens overall affordability for buyers.
Future Property Demand Drivers in Each Market
With housing affordability advantages clearly favoring buyers today, what underpins investor enthusiasm for luxury properties in Dubai and Singapore looking ahead? Weighing future demand drivers becomes vital.
Dubai Demand Drivers
Tourism Rebound - Dubai hosted nearly 16 million visitors in 2023 as pandemic headwinds fade. With huge tourism infrastructure and Dubai Expo bringing newfound attention, foreign interest expands. And nothing sells Dubai’s luxury appeal better than visiting firsthand.
Improving Fundamentals - After its 2014 market slump, Dubai now posts healthy housing indicators like rising rents, strong sales volumes, and shrinking vacancies. Areas lagging a few years back make resurgences. And hosting the World Expo showcased Dubai’s top tier brand to the world.
New Development - From lavish golf communities to modern high-rises, Dubai’s property pipeline gushes with ongoing luxury development. Just a few current examples include Dubai Creek Beach, Vida Dubai Marina & Yacht Club, Atlantis The Royal…and of course more Palm Islands! With extensive upcoming supply, developers feel optimistic.
Lifestyle Appeal - Sometimes lost in the focus on oil wealth is Dubai’s premier lifestyle offering - amazing shopping, beaches, restaurants, hotels, and recreation. For well-heeled buyers from Asia, Europe, and beyond looking for second homes, that becomes a magnetic pull as the UAE cements itself as the Middle East’s undisputed hub.
Singapore Demand Drivers
Foreign Buyer Relaxation - During pandemic lockdowns, Singapore adjusted rules to allow more foreigners to purchase private homes without added stamp duties. Previously the added ABSD rates deterred overseas investors. As travel resumes post-COVID, interest from mainland Chinese and other nationalities picks back up.
Strong Currency - One drag curtailing foreign purchases in Singapore has been a strong local dollar, making real estate relatively expensive to external buyers. However after weakening against Western currencies in 2023, the Singapore dollar now appears reasonably valued from foreign perspectives. And locals enjoy high household wealth.
Safe Haven Appeal - Singapore maintains elite credit ratings, low sovereign risk, steady GDP growth, and political stability - a winning combination during economic uncertainty. The country now also hopes to become Asia’s crypto/digital assets hub. All reasons why Singapore property should stay in demand as an ultra-safe regional haven.
Scarcity & Supply Control - Given its tiny size, Singapore can only house so many people. This basic land scarcity, coupled with government interventions via stamp duties and land sales to regulate housing inflation, suggests property prices probably won’t meaningfully dip barring wider financial crises. Everyone needs somewhere to live in Singapore - housing remains non-negotiable.
The Takeaway for Property Investors
In Singapore, appreciating real estate passes between generations - homes take on emotional significance and provide financial security. Yet Dubai offers glamorous new-builds that investors can lease out to travelers worldwide after enjoying themselves personally for weeks at a time. Both are compelling models.
But based on property price trends and future demand drivers, Dubai appears to have a higher upside play short term. Over enough years, Singapore’s stability wins out. So, depending on your investing time horizons, both cities warrant consideration to balance overall real estate holdings. Just beware - neither market comes cheap!
