Dubai vs Melbourne Property Investment
A Melbourne apartment yields roughly 3.2% gross before land tax and marginal income tax. A comparable Dubai apartment yields 5.5–6.5% gross with no local tax and no annual land tax. This page compares the full cost stack side by side and models a ten-year hold for a Victorian investor.
Key takeaways
- Dubai gross yield is roughly double Melbourne's.
- Victoria charges land tax annually; Dubai charges none.
- Foreign purchaser duty in Victoria is 8%; Dubai charges 0% surcharge.
- Australian tax residents still declare Dubai income to the ATO.
Cost stack comparison
| Item | Melbourne | Dubai |
|---|---|---|
| Stamp duty / transfer | ~5.5% + 8% foreign surcharge | 4% DLD, no surcharge |
| Annual land tax | Yes, scaled | None |
| Council rates + owners corp | AUD 4,500–7,000 | Service charge AED 12–22/sqft |
| Gross yield | ~3.0–3.5% | ~5.5–6.5% |
| Local income tax on rent | Marginal | None |
| Local CGT | Yes | None |
Ten-year worked example
| Line | Melbourne AUD 800K | Dubai AED 2.2M (~AUD 900K) |
|---|---|---|
| Total gross rent (10y) | ~AUD 260,000 | ~AUD 560,000 |
| Local taxes and land tax | ~AUD 70,000 | AUD 0 |
| Outgoings | ~AUD 60,000 | ~AUD 130,000 |
| Net rental profit | ~AUD 130,000 | ~AUD 430,000 |
| Capital gain at 4% p.a. | ~AUD 385,000 | ~AUD 430,000 |
Where Melbourne wins
- No currency exposure for AUD-income investors
- Deep local lending market and higher LVRs
- Landlord familiarity and physical proximity
- Planning-constrained supply in inner suburbs
Frequently asked questions
Is Dubai property a better investment than Melbourne?
On net yield and tax efficiency, yes — Dubai delivers roughly double the gross yield with no local income tax, land tax or CGT. Melbourne wins on currency match and lending depth.
Do Victorians pay foreign purchaser duty in Dubai?
No. Dubai charges every buyer the same 4% Dubai Land Department transfer fee regardless of nationality or residency.
How do I buy Dubai property from Melbourne?
Remotely, via a notarised power of attorney, or in person at the Dubai Property Expo when it reaches Melbourne. Miri Homes handles verification, transfer and letting.