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Dubai was never on my radar. I’m a New York guy — born in Connecticut, played college ball at Trinity, lived in Manhattan for over a decade, now in Williamsburg. But when I saw what was happening in the Dubai real estate market — zero property tax, 8–10% rental yields, a government that actually wants foreign investment — I couldn’t ignore it. And neither should you.

The Lundgren Team now operates in three markets: NYC, Miami, and Dubai. Here’s everything I’ve learned about buying in Dubai as an American, written for the person who’s curious but doesn’t know where to start.

Can Americans Legally Buy Property in Dubai?

Yes, 100%. Since 2002, foreigners can purchase freehold property in designated areas of Dubai — and those areas include virtually every neighborhood you’d want to be in: Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Beach Residence, Business Bay, and the rapidly developing Dubai Creek Harbour.

There are no restrictions on nationality. No required residency. No annual property tax. Let me repeat that: zero annual property tax. Coming from New York, where my clients pay tens of thousands in property taxes annually, that alone is a game-changer.

How Does the Dubai Luxury Market Compare to NYC?

The value proposition is staggering. What $2–3M buys you in Manhattan — maybe a two-bedroom condo with partial views — gets you a three-bedroom waterfront apartment with a private pool and full-floor Marina views in Dubai. The per-square-foot pricing in prime Dubai neighborhoods runs $600–$1,200, compared to $1,800–$3,000+ in prime Manhattan.

And unlike NYC, Dubai’s new development market is booming with inventory. You can buy off-plan (pre-construction) with developer payment plans that often require as little as 10–20% upfront, with the balance spread over construction and post-handover. Try getting that deal on Billionaires’ Row.

Is Dubai Real Estate a Good Investment in 2026?

Here’s the data: Dubai recorded over $150 billion in real estate transactions in 2024, a record year. The population grew by over 100,000 in a single year. Rental yields in prime areas are running 6–8%, compared to 2–3% in Manhattan. The government is actively expanding infrastructure, adding new metro lines, and hosting global events that drive tourism and demand.

Is there risk? Of course. Every market has risk. Dubai had a correction in 2008–2010 and again in 2015–2020. But the structural changes since then — visa reform, Golden Visa programs, diversification away from oil — have fundamentally repositioned the market. I’m not telling you to bet your portfolio on Dubai. I’m telling you to allocate a portion of it there and watch what happens.

What Are the Hidden Costs of Buying in Dubai?

There aren’t many, which is part of the appeal. The Dubai Land Department charges a one-time 4% transfer fee at purchase. There are nominal registration fees and agency commissions (typically 2%). There’s no capital gains tax, no income tax on rental income, and no annual property tax.

The biggest “hidden” cost is the service charge, which covers building maintenance, common areas, and amenities. This runs approximately $3–8 per square foot annually depending on the building — comparable to NYC common charges but without the underlying property tax.

Do I Need a Local Broker in Dubai, or Can My NYC Agent Help?

You need both — ideally in the same team. That’s exactly what we’ve built. The Lundgren Team operates across NYC, Miami, and Dubai with agents who understand the legal frameworks, developer relationships, and market dynamics in each city. When one of my NYC clients wants to explore Dubai, they don’t need to find a stranger on the ground. We handle the entire process — from identifying the right development to coordinating international transfers to managing the property post-purchase.

Real estate is becoming a global game. The clients I represent aren’t just buying in one city anymore. They’re building portfolios across borders. And the team that can serve them everywhere is the team that earns their trust for life.