Dubai and Singapore are the two most popular destinations for international property investors. Both are global hubs, both attract high-net-worth individuals, and both offer safety, infrastructure, and lifestyle that rival any city in the world.
But for property investors, these cities could not be more different.
The Numbers at a Glance
| Factor | Dubai | Singapore |
|---|---|---|
| Average rental yield | 6-9% | 2.5-3.5% |
| Property tax | 0% | Up to 60% ABSD for foreigners |
| Capital gains tax | 0% | 0% (but ABSD on purchase) |
| Income tax | 0% | 0-24% progressive |
| Avg price per sqft (prime) | AED 2,800 (USD 760) | SGD 3,200 (USD 2,370) |
| Foreign ownership | Freehold in designated areas | Restricted (condos only) |
| Minimum investment | ~AED 750K (USD 200K) | ~SGD 1M+ (USD 750K+) |
| Residency via property | Yes (Golden Visa at AED 2M) | No direct pathway |
| Currency peg | USD (fixed) | Managed float |
Entry Costs: Dubai Wins Decisively
Dubai Purchase Costs
| Item | Cost |
|---|---|
| DLD Transfer Fee | 4% |
| Agency Commission | 2% |
| Mortgage Registration | 0.25% (if financed) |
| Trustee Fee | AED 4,200 |
| Total | ~7% |
Singapore Purchase Costs (Foreign Buyer)
| Item | Cost |
|---|---|
| Additional Buyer Stamp Duty (ABSD) | 60% |
| Buyer Stamp Duty (BSD) | 1-6% progressive |
| Legal fees | 0.3-0.5% |
| Agency Commission | 1-2% |
| Total | ~63-69% |
That's not a typo. Singapore's Additional Buyer Stamp Duty for foreign buyers is 60% as of 2024. A foreigner buying a SGD 2M condo pays approximately SGD 1.2M in ABSD alone — before any other costs.
This single policy makes Singapore virtually inaccessible for foreign property investors unless they plan to become permanent residents (ABSD drops to 5% for first property).
Dubai's total purchase cost of ~7% is approximately 9x cheaper than Singapore's for foreign buyers.
Rental Yields: Not Even Close
Dubai Average Yields by Area (2026)
| Area | Studio | 1-Bed | 2-Bed | 3-Bed |
|---|---|---|---|---|
| JVC | 9.1% | 8.3% | 7.4% | 6.8% |
| Dubai Marina | 7.2% | 6.8% | 6.1% | 5.5% |
| Downtown | 6.5% | 6.2% | 5.7% | 5.1% |
| Business Bay | 7.8% | 7.1% | 6.4% | 5.9% |
| Palm Jumeirah | 5.8% | 5.5% | 5.2% | 4.8% |
Singapore Average Yields by Area
| Area | Studio | 1-Bed | 2-Bed | 3-Bed |
|---|---|---|---|---|
| Central (CCR) | 3.2% | 2.8% | 2.5% | 2.2% |
| City fringe (RCR) | 3.5% | 3.1% | 2.8% | 2.5% |
| Outside Central (OCR) | 3.8% | 3.4% | 3.1% | 2.8% |
Dubai yields are 2-3x higher than Singapore across every property type and location.
When combined with zero income tax on rental income in Dubai (vs up to 24% in Singapore), the effective yield gap is even wider.
Capital Appreciation
Dubai (2020-2025)
- Average appreciation: 60-80% (prime areas)
- Peak-to-peak: Still below 2014 peak in some areas, surpassed in others
- Palm Jumeirah: +95% from 2020 lows
- Business Bay: +70% from 2020 lows
- JVC: +55% from 2020 lows
Singapore (2020-2025)
- Average appreciation: 30-40% (broad market)
- Government actively cools the market with policy measures
- Consistent but moderate growth
- Cooling measures cap speculative gains
Dubai has outperformed Singapore on capital appreciation in recent years, though Singapore offers more stability. Dubai's market is more cyclical — higher highs, but also sharper corrections.
Tax Comparison
Dubai Tax Structure
- Personal income tax: 0%
- Capital gains tax: 0%
- Property tax: 0% (no annual property tax)
- Rental income tax: 0%
- Inheritance tax: 0%
- VAT on residential rent: 0% (exempt)
- Corporate tax: 9% (on profits over AED 375K, introduced 2023)
Singapore Tax Structure
- Personal income tax: 0-24% progressive (residents)
- Capital gains tax: 0% (but ABSD acts as de facto entry tax)
- Property tax: 4-36% of annual value (non-owner-occupied residential)
- Rental income tax: Taxed at personal income tax rates
- Inheritance tax: 0% (abolished 2008)
- GST on residential rent: 0% (exempt)
- Corporate tax: 17%
For a property generating AED 150,000 (SGD 55,000) annual rent:
- Dubai: AED 0 tax → keep AED 150,000
- Singapore: ~SGD 7,700 income tax + ~SGD 8,000 property tax → keep ~SGD 39,300
- Dubai investor keeps ~27% more after tax
Residency Benefits
Dubai
- Golden Visa: 10-year residency with AED 2M property purchase
- Includes: Spouse, children, domestic staff sponsorship
- No minimum stay requirement
- Pathway: Buy property → get visa → sponsor family
- Additional benefit: 0% income tax environment
Singapore
- No direct property-to-residency pathway
- Property purchase alone does not qualify for residency
- Must qualify through employment, business, or Global Investor Programme (GIP)
- GIP requires SGD 10M+ investment in business/funds
- PR application process: 6-12 months, competitive
If residency matters, Dubai is the clear winner. You can invest AED 2M (USD 545K) and get 10-year residency for the whole family.
Market Risks
Dubai Risks
- Oversupply cycles — Dubai builds aggressively, creating periodic oversupply
- Oil price dependency — Economy still linked to regional oil sentiment
- Currency risk — AED pegged to USD (stable, but linked to US monetary policy)
- Regulatory changes — Rules can shift quickly in a young market
- Service charges — Can be high and increase unpredictably
Singapore Risks
- Government intervention — Cooling measures can appear suddenly and drastically (ABSD went from 30% to 60% overnight)
- High entry cost — ABSD makes it extremely expensive for foreigners
- Low yields — Mortgage costs can exceed rental income
- Limited upside — Government actively prevents rapid appreciation
- Space constraints — Land scarcity limits new development in central areas
Lifestyle Comparison
| Factor | Dubai | Singapore |
|---|---|---|
| Climate | Hot (40°C+ summer) | Hot & humid year-round |
| Safety | Very safe | Very safe |
| Healthcare | Excellent (private) | World-class |
| Education | Growing (international schools) | Top-tier |
| Public transport | Improving (Metro, bus) | Excellent (MRT) |
| Dining & culture | Rapidly growing | Established |
| Natural beauty | Desert, beaches | Gardens, islands |
| Weekend travel | Easy (Oman, Maldives, Europe) | Easy (Bali, Thailand, Vietnam) |
Both cities offer exceptional expat lifestyles. Singapore edges ahead on walkability, public transport, and established food culture. Dubai leads on space (larger apartments for the price), weather variety (winter is perfect), and weekend travel options.
Who Should Invest Where?
Choose Dubai If:
- ✅ You want maximum rental yield
- ✅ You want zero tax on investment income
- ✅ You want residency through property
- ✅ You have a budget of USD 200K-2M
- ✅ You're comfortable with market cycles
- ✅ You want rapid capital growth potential
Choose Singapore If:
- ✅ You're a Singapore PR or citizen (5% ABSD vs 60%)
- ✅ You prioritize market stability over yields
- ✅ You want the safest legal framework in Asia
- ✅ You have USD 1M+ to invest
- ✅ You plan to live there long-term
- ✅ You value educational access for children
The Verdict
For pure investment returns, Dubai is the overwhelming winner. Higher yields, lower taxes, lower entry costs, and residency benefits make it the logical choice for investors prioritising cash flow and total returns.
For lifestyle buyers who are Singapore PRs, Singapore makes sense as a stable, appreciating asset in one of the world's best cities.
For foreign investors with no local ties to either country, Dubai offers approximately 3-4x better total returns when accounting for yields, taxes, and entry costs.
The Hybrid Strategy
Smart investors are doing both — differently:
- Dubai for yield — Buy 2-3 apartments generating 7%+ net yield
- Singapore for residence — If you live there, buy one home (lower ABSD as resident)
- Diversify timing — Dubai for growth phases, Singapore for stability
The AED 2M Golden Visa threshold means investors can get UAE residency AND generate strong yields with a single purchase — something Singapore simply cannot match.
Related Articles
- Dubai vs London: Property Investment Comparison (2026)
- Best Areas to Invest in Dubai Real Estate in 2026
- Dubai Rental Yields: A Complete Guide for Property Investors
- Dubai Golden Visa Through Property Investment: The Complete 2026 Guide
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Mister Seven specialises in helping international investors navigate the Dubai property market. Whether you're comparing Dubai to Singapore, London, or any other market — we'll show you the numbers that matter.