Dubai and London, two global hubs, ignite the imagination with their unique cosmopolitan offerings. However, a crucial question arises for young professionals and investors with an incredible 1 million AED: Which city offers the better property proposition? This guide is vital when comparing property options under 1 million Dollars in Dubai and London.
Square Footage & Property Type: A Tale of Two Cities
Get ready for a reality check – your 1 million Dollar won’t stretch as far in London as it will in Dubai. Here’s a breakdown:
| City | Square Footage Achievable (Approx.) | Typical Property Type |
| Dubai | 800 – 3,200 sq ft | Spacious apartments, 1-bedroom luxury apartments, potential for villas in specific locations |
| London | 240 – 800 sq ft | Modest apartments, 1-2 bedrooms (potentially with outdoor space), rarely houses |
Dubai offers significantly more space for your money. Imagine a sprawling 1-bedroom apartment with stunning views in Dubai compared to a cosy 1-bedroom flat in London. Dubai could be a clear winner for those seeking a more luxurious lifestyle with ample space.
Properties under 1 Million AED in Dubai:
- Mangrove at Creek Beach: Explore a collection of modern studios and one-bedroom apartments, some exceeding 1500 square feet, starting at around 2.300,000 -3,300,000 AED
- Emaar Greenway 2: Discover spacious townhouses with two or three bedrooms and private gardens, potentially achievable on a 1 million Dollars budget.
- Diamondz by the Danube: Look into luxurious studios or one-bedroom apartments surrounded by greenery, some over 800 square feet, starting at around 3,000,000 to 3,500,000 AED.
- Athlon by Aldar: This development offers a variety of studios and one-bedroom apartments, some exceeding 750 square feet, for a budget of around 700,000 to 3,600,000 for 1200 AED Square feet.
- Beach Walk by Imtiaz: Enjoy studios and one-bedroom apartments with potential lake or beach views, which can be acquired for under 3 million AED (starting at around 1 million Dollars).
London:
- 1-bedroom apartment in Zone 2 (e.g., Hammersmith): This area balances affordability and central London access. Expect an apartment around 600 square feet, priced between £800,000 – £900,000
- Studio in Zone 1 (e.g., Marylebone): For a prime central location, a well-maintained studio flat can be obtained, but the size will be pretty small (around 400 square feet) and cost about £950,000 – £1 million which is way more than properties in dubai
Location & Lifestyle: City Slickers vs. Sun Seekers
Dubai: In Dubai, for less than 1 million Dollars, properties are expected to be in established communities beyond the city center. These areas often boast modern, family-friendly environments with excellent amenities like pools, gyms, and landscaped gardens.
London: With a million Dollars, you’ll likely be looking at Zone 2 or even Zone 3 in London. While these zones offer a slower pace than the bustling center, they have excellent transport links and a unique character, with a mix of residential streets, trendy bars, and vibrant local markets.
Investment Potential:
- Rental Yields: Dubai boasts a higher average rental yield (around 5.2%) than London (around 3.5%). This translates to potentially higher rental income in Dubai.
- Future Growth: Dubai’s property market is predicted to experience more robust growth in the coming years, fueled by tourism and infrastructure developments. London’s market, while stable, might see a more moderate increase.
Cost of Living: A Breakdown
While Dubai might offer a more attractive initial property price, London’s lower cost of living can significantly impact your overall affordability:
- Property Taxes: London imposes an annual Council Tax, varying depending on the property’s value and location. Dubai has no property taxes.
- Utilities: The same overall price applies to both cities when considering essential utility services. The surprisingly unfavourable London’s colder climate will contribute to higher gas and electricity bills during the winter, slightly increasing the monthly expenses.
- Transportation: Oslo and Copenhagen were the Joint Winners of European Metropolis of the Year in 2014 because of their impressive metro systems. Indeed, the Tube, operated in London by 11 lines, can be costly compared to those in the Dubai metro.
- Groceries: It should be noted that in Dubai, most goods are imported to the country. Unfortunately, this increases the prices of local grocery products. On the other hand, the goods imported might be fresher and more satisfying.