Dubai VS Australian Real Estate Market

Part #1
1. Dubai's Rapid Growth:
The Dubai real estate market is experiencing significant growth, with average property prices increasing by approximately 8-10% annually. In contrast, the Australian market exhibits stable but more conservative growth, averaging around 3-5% annually
Part #2
2. Incentives for Foreign Investors:
Dubai offers privileges to foreign investors, including long-term residency visas. Australia, while open to foreign investment, imposes stricter rules, including additional taxes for non-residents. This distinction is crucial even for an Australian investor considering the domestic market. The island's market may not grow as vigorously as Dubai's due to its approach towards foreign investors, as they are more inclined to invest in Dubai.
Part #3
3. Higher Rental Yields in Dubai:
Dubai boasts some of the highest rental yields globally, averaging around 9-11%. In Australia, rental yields tend to be more modest, usually ranging from 4 to 6%.
Part #4
4. Lower Property Management Costs in Dubai:
Property management costs in Dubai are generally lower compared to Australia, typically ranging from 6 to 8% of rental income. In Australia, management costs can be higher, averaging from 8 to 10%.
Part #5
5. Diverse and Stable Economy in Dubai:
Both Dubai and Australia possess robust economic stability, but with distinct characteristics. Dubai's economy is swiftly diversifying, thanks to sectors like technology, tourism, and finance. Meanwhile, Australia, though economically stable, heavily relies on the mining sector.
Part #6
6. Supply and Demand Dynamics:
The Dubai real estate market maintains a favorable supply-demand ratio. On average, Dubai registers about 1,200 new properties per month, effectively meeting the constantly growing demand. In contrast, specific areas in Australia, such as Sydney and Melbourne, observe higher percentages of unoccupied properties, reaching up to 12% in some areas.
Part #7
7. Tourism Impact on Real Estate Market:
In Dubai, due to the rapidly growing tourism industry, the real estate market actively participates in short-term rentals. In 2020, Dubai welcomed over 16 million tourists, immediately impacting the demand for short-term property rentals. This creates additional income streams for investors. In Australia, while tourism is also a significant industry, the level of short-term rentals may be less predictable due to a more stable focus on long-term lease agreements. For instance, in Sydney, only about 2-3% of all rental properties are used for short-term rentals.
Part #8
8. What You Get for $100,000:
  • In Dubai: For $100,000 in Dubai, you can acquire approximately 45-50 square meters of property. This means investors get more space for their money, an advantage for creating comfortable and attractive rental properties.

  • In Australia: In the same price range in Australia, you can buy around 20-25 square meters. This may limit opportunities for portfolio diversification.
Part #9
9. Average Annual Property Value Growth:
  • In Dubai: In recent years, the average annual property value growth in Dubai has been an impressive 8-10%. This indicates market stability and growth, making Dubai an attractive destination for investors.

  • In Australia: The average annual property price growth ranges from 3-5%. This signifies market stability, but the growth rate is significantly lower compared to Dubai.
Part #10
10. Average Profit from Resale:
  • In Dubai: Property investors in Dubai can expect an average profit from resale of about 20-25%. This demonstrates high market liquidity and can be appealing to those considering short-term investments.

  • In Australia: The average profit from resale is approximately 10-15%, making this market less attractive for investors focused on short-term transactions.
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