New York City And Dubai: Worlds Apart Yet Similar When It Comes to Finding Your Second Home
Dubai has become a popular market for luxury second homes for high-net-worth individuals worldwide, with over 500 centi-millionaires – individuals worth $100 million or more – owning second homes in the city. The market for luxury homes in Dubai has grown every year in the past several years. However, many of the factors that make Dubai’s luxury home market a great option are also true for New York City, where most new construction is currently geared toward the luxury market.
Despite being nearly 7,000 miles apart and seemingly very different, there are many similarities between New York City and Dubai, making both cosmopolitan capitals excellent options for a luxury secondary home.
Global Business, Tourism, and Medical Hubs
Both Dubai and New York City are considered global hubs for technology. According to the 2022-23 Innovation Cities Index, New York ranked third and Dubai ranked 14th on the Global 500 World’s Most Innovative Cities list.
In the area of finance, while New York City ranks number one across all sectors, Dubai now ranks 20th, and is now in the top 15 cities in the areas of Fintech and Professional Services, according to the Global Financial Centres Index. Both of these world-class cities are top global tourism destinations, ranked among the top 10 cities in international arrivals as part of Euromonitor International’s 2023 study. While Dubai’s tourism options are relatively new (such as the Burj Khalifa tower, the Dubai Fountain, and Burj al Arab), New York City offers some of the most famous locations, from Times Square and Central Park to the Empire State Building and the Statue of Liberty, as well as famous cultural institutions encompassing art, theater, and music.
Both cities also offer top-of-the-line medical facilities, such as Mount Sinai Hospital, New York Presbyterian (Cornell and Columbia), New York University’s Langone Hospitals in New York, and Al Zahra Hospital, Canadian Specialist Hospital and the Saudi German Hospital in Dubai. All of these institutions are at the helm of cutting-edge research and treatments. Both cities are also home to top educational institutions, including Columbia University and New York University in New York, and Dubai’s American University in the Emirates and the American University in Dubai.
Cuisine
Dubai’s population is primarily expats (over 85% are from outside the country), while New York City is known for its melting pot reputation and wide range of ethnic populations across the city. Since both cities offer ethnic diversity, they both offer a breathtaking number of cuisine options and are considered culinary capitals. New York City is home to 71 Michelin-starred restaurants and is also known for a wide range of ethnic cuisine across the city, including hubs such as Chinatown, Little Italy, Koreatown, and many others. Dubai features 14 Michelin-starred restaurants and a vast array of ethnic eateries, especially those featuring Persian, Syrian, Indian, Pakistani, and Emirati cuisines.
Transportation
With three international airports, New York City provides easy travel access to anywhere across the globe, making it a desirable location for globetrotters, while Dubai’s Al Maktoum airport is set to undergo a massive reconstruction, making it the largest airport in the world. Both cities offer sophisticated infrastructure and transportation networks, making them both easy cities to navigate.
Recreation
Residents of New York City’s luxury buildings enjoy a wide range of recreational amenities within their building, including state-of-the-art fitness centers, frequently with pools, saunas, spas, massage rooms, private rooms to work with trainers, as well as basketball courts and golf simulators. These types of amenities are also available in many residential towers in Dubai.
New York also offers additional options for tennis, pickleball, basketball, golf, yoga, pilates, and countless other recreational outlets, as well as multiple locations for running and parks with playgrounds and other recreation opportunities. Skiing is available in winter outside the city. Due to higher temperatures, Dubai offers many of these recreational activities both indoors and outdoors (including indoor skiing), as well as a range of water sports and nearby desert activities such as ATV dune riding, sand surfing, camel rides, and more.
World-Class Shopping
Both Dubai and New York are shopper’s paradises. The world’s best-known brands can be found along Fifth Avenue and in Soho, as well as at department stores, boutiques, and shopping centers across Manhattan. Dubai is also considered one of the world’s best shopping locations, with the Dubai Mall, the largest mall in the world, offering 1,200 stores featuring luxury and couture brands.
Luxury Real Estate
Dubai has seen a surge in new development over the past several years, much of which falls within the luxury category. While New York City has always had a market for luxury developments, a majority of new construction in recent years has focused on this market segment. The average asking price for a new development home in Manhattan is currently $6 million, and 41% of the new development listings on the market are asking more than $4 million, according to real estate analytics firm UrbanDigs. Both cities, therefore, offer incredible luxury homes with top-of-the-line amenities, including private dining, health and wellness centers, wine cellars, entertainment centers for both children and adults, and even amenities geared toward pets.
Of course, there are distinctions between these two cities. New York City is significantly larger than Dubai and more expensive. For example, $1 million secures approximately 980 square feet of prime residential property in Dubai, compared to just 366 square feet in New York City, according to Knight Frank. There are different tax implications for a purchase in these cities as well. Dubai has no property taxes, whereas New York City real estate taxes can be as high as 20%. However, purchasing a pied-a-terre in either of these world-class cities is an excellent investment. Since the second quarter of 2019, condominiums in Manhattan priced at $4 million or above have seen their selling price per square foot rise nearly 8% when viewed by the date the sales contract was signed, according to UrbanDigs. Both New York City and Dubai are among the top global cities for luxury residential real estate investment, with solid appreciation over the long term due to their positions as global hubs for business and tourism. No matter whether you invest in a secondary home in New York or Dubai – or both – you will experience incredible opportunities to live in the most exciting, iconic, and sophisticated cities in the world.
Featured Listing
21 East 61st Street, 5A | New York, NY. | $3,200,000
This meticulously curated Upper East Side condo by renowned designer Vincente Wolf exemplifies the exceptional value of New York City real estate compared to similar properties in other global cities. Ideal for a lock-and-leave lifestyle, the residence offers the ultimate in convenience and luxury with a desirable split 2-bedroom layout, light-filled interiors, captivating northern views, a modern open kitchen featuring top-of-the-line Miele appliances, and a prime location in a full-service building overlooking Madison Avenue and 16th Street just half a block from Central Park.
Parisa M. Afkhami is a Manhattan-based real estate professional and strategist with Coldwell Banker Warburg. Regarded as a resident expert of the Upper East Side and a citizen of the world, she has spent the last three decades helping clients create more balanced, productive, and fulfilling lives. She speaks English, Farsi, and French.
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