UBS Bubble Index 2024: Dubai rated highly
The 2024 edition of the UBS Global Real Estate Bubble Index confirms that Dubai is one of the world's most attractive real estate markets. While many major metropolises are experiencing price corrections or a high risk of a real estate bubble, Dubai is showing sustained and controlled growth, with moderate risk, according to the UBS analysis.
In this article, we analyze the findings of the UBS report, the factors driving stability in Dubai's real estate market and why investing in Dubai in 2024 remains an unrivalled opportunity compared to other major cities. And discover the full official report in pdf at the bottom of the page.
Dubai: a fast-growing real estate market with controlled risk
The UBS Global Real Estate Bubble Index 2024 ranks the world's real estate markets according to their level of bubble risk. Dubai shows a 17% year-on-year increase in property prices, yet remains in a moderate risk zone, unlike cities such as Miami, Tokyo or Zurich, where the risk is high.
Why isn't Dubai in a bubble?
🔹 Demographic growth and international appeal: the emirate attracts thousands of investors and expatriates every year thanks to its advantageous tax framework and dynamic economy.
🔹 A market supported by cash purchases: unlike markets where debt levels are high, the majority of transactions in Dubai are carried out without borrowing, reducing the risk of overheating.
🔹 Demand absorbing supply: although construction continues, rising rents and population ensure rapid absorption of new properties.
🔹 A still affordable market: the price/income ratio remains lower than in major Western metropolises, making Dubai more accessible to investors.
UBS real estate bubble risk comparison:
| City | UBS 2024 score | Risk assessment | Price trends in 2023-2024 |
|---|---|---|---|
| Miami | 1.79 | High | +7,4 % |
| Tokyo | 1.67 | High | +5,6 % |
| Zurich | 1.51 | High | +2,4 % |
| Dubai | 0.64 | Moderate | +16,8 % |
| Paris | 0.35 | Low | -10,4 % |
| New York | 0.37 | Low | +0,5 % |
🔹 Worth noting: Dubai is one of the few major cities where prices are rising strongly while maintaining moderate risk, making it even more attractive to investors.
Exceptional rental yields and tax advantages
One of the strengths of the Dubai real estate market is its high rental yields. According to UBS, rents have risen by 60% in real terms since 2020, enabling rental yields of 6-7% on average, well above those of major European or North American metropolises.
Why is Dubai the destination of choice for rental investors?
✔ No income or capital gains tax
✔ Rents rising sharply
✔ Steadily expanding rental demand
✔ A secure legal framework for landlords
By way of comparison, rental yields in Zurich or Paris are often below 3%, while in Dubai they can exceed 8% in certain strategic areas.
An alternative to markets in correction
Many major Western cities have seen their real estate markets correct sharply in recent years, mainly due to rising interest rates and falling purchasing power.
🔹 Paris: prices down 10.4% over one year
🔹 Frankfurt and Munich: corrections of more than 20% since 2021
🔹 Hong Kong: market in difficulty with prices falling to 2012 levels
Dubai, on the other hand, continues to show positive momentum. Its market continues to be driven by strong demand, first-rate infrastructure and an attractive tax environment, making it one of the best options for international investors.
Conclusion: Dubai, a unique opportunity to invest in 2024
The UBS Global Real Estate Bubble Index 2024 confirms Dubai as one of the world's most dynamic and secure real estate markets.
✅ S trong price growth (+17% in one year) without excessive risk of a bubble
✅ Economic and demographic growth supporting demand
✅ Rental yields among the best in the world
✅ Attractive tax environment for foreign investors
Compared with major European or North American cities, Dubai stands out for its higher profitability and lower investment risk.
If you're looking for a strategic real estate investment destination, Dubai remains an unmissable opportunity in 2024.
📩 Want to know more about the best real estate opportunities in Dubai? Contact a Dubai Immo expert today!
Guillaume Giroux, Dubai Immo founder and real estate expert, Dubai, UAE
As founder of the Dubai Immo Group and a real estate investor, I bring you daily updates on the Dubai market. My aim is to provide you with all the keys you need to invest wisely and securely, by sharing my in-depth analysis and strategic advice.
