Dubai has emerged as one of the world’s most affordable major cities for homeownership, ranking third globally in the UBS Global Real Estate Bubble Index 2026. The emirate came behind Toronto and Miami in housing affordability relative to income, among 23 major cities covered by the report.
According to UBS, an average-income skilled worker in Dubai needs around five years of earnings to buy an apartment near the city center, considerably less than in many other major property markets.
Dubai also ranked second globally for its low property price-to-rent ratio, behind São Paulo. The report found that the estimated economic cost of owning a home in the emirate is lower than renting a comparable property, while residential prices remained relatively stable.
Five Years of Income Enough to Buy an Apartment in Dubai
Buying an apartment in Dubai requires around five years of income for a skilled service-sector worker earning an average salary, according to the UBS report.
The calculation is based on the number of years such a worker would need to purchase a 60-square-meter apartment near the city center. UBS uses this measure to compare housing affordability across major cities, taking both property prices and income levels into account.
Dubai’s position becomes clearer when compared with other international property markets. In Hong Kong, a worker would need approximately 15 years of income to buy a similar apartment, compared with 11 years in London.
The figure also exceeds 10 years in Tokyo, Paris, and Seoul, highlighting the considerable differences in housing costs relative to income across these cities.
With just five years of earnings needed to purchase an apartment, Dubai offers a more accessible path to homeownership than many of the major cities included in the study.
Dubai Ranks Second Globally for Attractive Property Prices Relative to Rents
Dubai also secured second place worldwide among cities with the lowest property price-to-rent ratios, coming immediately after São Paulo.
The ratio measures how many years of rental income would be needed to cover a property’s purchase price. It provides a way to compare property values with the income they can generate through renting.
In Dubai, the ratio stands at around 16 years. In other words, the price of an apartment is roughly equivalent to 16 years of rental income, before accounting for additional expenses.
The difference is substantial when compared with several other major cities. Zurich has a price-to-rent ratio of 46 years, followed by Geneva at 40 years and Seoul at 25 years. In Munich, Frankfurt, and Hong Kong, the ratio exceeds 30 years.
A lower ratio means that property purchase prices are relatively close to rental income levels. In cities with higher ratios, buyers pay considerably more for a property compared with the income they could earn by renting it out.
Dubai’s relatively low ratio highlights the relationship between property prices and rental income in the emirate, adding to its appeal for buyers and investors interested in the local real estate market.
Buying Property in Dubai More Attractive Than Renting
Owning a home in Dubai is also economically more attractive than renting a comparable property, according to calculations presented in the UBS report.
The bank found that the estimated economic cost of homeownership in the emirate is lower than the cost of renting a similar property.
This comparison goes beyond the purchase price or monthly mortgage payments. It takes into account mortgage interest, the opportunity cost of invested capital, maintenance expenses, taxes, and depreciation.
UBS also uses a broader measure known as “user cost,” which includes these expenses alongside risk premiums and the potential gains associated with future increases in property values.
Based on this measure, Dubai is among the cities where the estimated cost of owning a home is lower than renting one. Madrid and Zurich are also included in this group.
The findings make property ownership in Dubai relatively more appealing than renting and could help support demand for residential properties in the emirate.
Stable Property Prices Strengthen Dubai’s Real Estate Market Appeal
Residential property prices in Dubai remained relatively stable over the year ending in the second quarter of 2026, according to the UBS report.
Inflation-adjusted home prices increased by 0.4% during that period, while real rents declined by 4%.
These figures follow a strong year for Dubai’s real estate market in 2025, when inflation-adjusted home prices rose by more than 10%, reflecting the considerable momentum the sector had experienced.
The latest findings highlight Dubai’s position among major international property markets, with relatively accessible home prices, a low price-to-rent ratio, and estimated homeownership costs below those of renting comparable properties.
