Best City for Property Investment in 2025? Dubai, London, Mumbai, Singapore Vs. Delhi-Returns, Rental Yield & Growth

When considering investing in a particular city, it is essential to make sure that you are aware of the location as well as the connectivity constraints associated with the city.

Dubai

Situated on the Persian Gulf coast of the United Arab Emirates, this is a magnificent city in the UAE. This emirate is a popular tourist destination and a prominent powerhouse of elegance and beauty. The showstopper of this city is Burj Khalifa, the 830m tall tower, known as the tallest skyscraper in the world.

The communities in Dubai enjoy good connectivity. The city enjoys smooth connections through a network of prime roads, such as Sheikh Zayed Road (E11), Sheikh Mohammed Bin Zayed Road (E311), Dubai-Al Ain Road (E66), and Emirates Road (E611). The city also provides access to RTA bus services and taxis to ease transportation. In addition, Dubai also offers a hassle-free commute to residents via the metro. The Dubai Metro is fully automated with two main lines, the red and green lines, connecting the various communities. Moreover, the city has recently introduced water taxis, allowing commuters to move conveniently in and around the city through the waterways.

Mumbai

Located on the west coast of India, Mumbai is a city with deep waters. It is an island and suburban city, situated on the Konkan coast of Maharashtra, along the Arabian Sea. It is a major metropolitan city in India that enjoys smooth connectivity with access to air, rail, and road transport systems.

Mumbai is connected to various other cities in the world with good air transportation facilities, like the Chhatrapati Shivaji Maharaj International Airport (BOM). The Mumbai Local Train is a major and most popular transportation medium for the common people in the city. The city also has access to outstation train services. Apart from rail transport, Mumbai also has a seamless connection to other cities via roadways, such as the Mumbai-Pune Expressway and the Bandra-Worli Sea Link.

Singapore

Located at the southern tip of the Malay Peninsula, this island nation is a major hub for trade, finance, and transportation. Singapore is situated between the Indian Ocean and the South China Sea, and along the Strait of Malacca, the Singapore Strait, and the Straits of Johor.

The Port of Singapore is the world’s busiest transshipment port and the world's biggest ship refuelling centre. The Changi Airport and Seletar Airport are the two civilian airports in Singapore, facilitating air travel to and from this island country. In terms of other public transportation facilities, Singapore provides its residents and tourists seamless connectivity networks, such as Light Rail Transit (LRT), buses, and taxis. It also has access to a well-developed network of roads, such as the Pan Island Expressway (PIE), Central Expressway (CTE), and Ayer Rajah Expressway (AYE).

London

London is located on the River Thames in the southeastern part of the island of Great Britain. It is a major global city and the capital of England and the United Kingdom (UK).

London has six major international airports, including Heathrow, Gatwick, Stansted, Luton, City, and Southend. The city has high-speed train services and the London Underground (Tube) as major public transportation options. Other forms of public transportation include buses, coaches, trams, and cable cars.

It is an international hub with road connectivity networks, such as the M25 orbital motorway. London also has regular ferry services that connect the city ot continental Europe and Ireland.

Delhi 

Delhi is a major metropolitan city in North India. Situated on the western bank of the Yamuna River, it has close borders to Haryana on three sides (north, west, and south), and Uttar Pradesh on the east. Delhi is the national capital territory in north-central India.

Delhi enjoys good and smooth connectivity networks for its residents. People can commute easily by air (Indira Gandhi International Airport), roads (Delhi-Gurgaon Expressway and Delhi-Meerut Expressway), and rail (New Delhi Railway Station) transportation systems. The city also has access to public transportation, like buses, autos, and rickshaws. The most popular and convenient form of public transportation is the Delhi Metro, which makes it possible for people to travel flexibly across different areas within the city.

Let’s do a comparative study on the prices of properties in the different cities of the world to determine the best city for property investment in 2025.

Prices in the City Center of Global Cities 2025

City	Average Rental Prices (US dollars)	Average Property Prices per sq. ft. (US dollars)
Dubai	2000 - 2800	400 - 700
Mumbai	600 - 800	300 - 800
Singapore	2000 - 3500	2000 - 2700
London	2500 - 3800	1200 - 2000
Delhi	300 - 600	250 - 500

Observations:

1. Rental Prices

• London and Singapore are the most expensive cities to rent in.
• In comparison to London and Singapore, Dubai offers more affordable options for rent.
• Dubai’s no tax policy and high rental yields also make it an attractive investment.
• Delhi and Mumbai are very affordable cities for renting. However, they provide low rental yields.

       2. Property Prices per sq.ft.

• Singapore and London have the most expensive property prices per sq.ft.
• Dubai offers competitive prices with better value per sq.ft.
• Mumbai and Delhi are cities with affordable prices, but lack ease in foreign ownership

The capital appreciation conveys a lot about the economic condition, growth, and development patterns of the city. It is essential to consider the capital growth rates while choosing any city for investment

Annual Capital Growth Rate of Global Cities

City	Annual Capital Growth Rate	Luxury Segment	Outlook 2025
Dubai	6% - 8%	Very high	5% - 10%
Singapore	3% - 4%	Moderate	3% - 4%
Mumbai	8% - 10%	High	5.8% - 8.5%
London	2% - 3%	Low	2% - 4%
Delhi	4% - 5%	Very strong	5.8% - 8.5%

Observations:

• Dubai has showcased strong capital appreciation rates. It is projected that the city will provide higher growth rates in 2025.
• Delhi and Mumbai have strong capital growth rates in the luxury segment. In comparison to Mumbai, Delhi has been a step behind, but it is expected to catch up and tie in terms of capital appreciation with Mumbai in 2025.
• Singapore and London generate moderate and low annual capital growth rates, respectively.

For buyers and investors, it is important to understand the difference in taxes applicable across particular cities.

Taxes Applicable in Different Cities

The rental yields are an important and major driving factor while selecting a place to pool your resources. Buyers and investors tend to invest in areas with high and profitable rental yields to make good investment decisions.

Average Rental Yield of Global Cities 2025

City	Average Rental Yield
Dubai	5% - 8%
Singapore	2.5% - 3.3%
Mumbai	2% - 3%
London	2.5% - 5.5%
Delhi	2.5% - 4%

Observations:

• Dubai has the highest rental yield of around 8%. It can go to 8.5%-9.5% in luxurious communities like International City.
• Delhi and Mumbai have almost the same rental yield rates, ranging from 2% to 4%.
• Singapore offers comparatively low rental yields.

Key Takeaways for Investors:

• Income-focused Buyers - Dubai’s high rental yields and no tax policies make it very attractive.
• Stability-seeking Investors - Singapore and London offer steady rents and regulatory transparency, making it a stable investment option.
• Growth-focused Buyers - Delhi and Mumbai lack high rental yields, but they offer local familiarity and strong growth potential.

When buying a property, awareness regarding the rate of crime in the cities is essential, especially for those planning to reside in the property. One must be aware of the security and safety in and around the neighborhood.

The Differing Crime Rates in Cities

Observations:

• Dubai is the city with the lowest crime rate for burglary, robbery, corruption, and bribery. The city also records the highest safety index in comparison to all the other cities.
• Singapore is the second safest city on the list. 
• Delhi is the most unsafe city among the list taken for comparison. Even compared to its fellow city, Mumbai, Delhi is quite a crime-prone zone. 
• Though London also records a low safety index and high crime index, it is safer in comparison to Delhi.

Comparing the economic stability maintained by the cities in the pre-COVID and post-COVID times, considering the various important parameters.

Dubai

Indicator	Pre-COVID	Post-COVID
GSDP Growth	2.1% in H1 2019	3.2% in H1 2023; 3.1% in Q3 2024
Per Capita Income	Approximately AED 115,000	Estimated at AED 429,000 in 2023
Fiscal Balance	Surplus of 10% of GDP in 2022	Surplus of 5% of GDP in 2023
Unemployment Rate	2.1% unemployment in 2019	2.5% unemployment in 2024
Inflation Rate	-1.4% in December 2019	3.15% in January 2025

Singapore

GSDP Growth	0.7% in 2019	7.6% in 2021, 2.9% in Q2 2024
Per Capita Income	Approximately USD 66,082	USD 79,601 in 2021, USD 84,734 in 2023
Fiscal Balance	Surplus of 10% of GDP in 2022	Surplus of 5% of GDP in 2023
Unemployment Rate	2.2% unemployment in 2019	2% unemployment in 2023
Inflation Rate	0.57% in 2019	4.82% in 2023 and 2.37% in 2024

Mumbai

GSDP Growth	~6-7% annual growth (steady before 2020)	Recovered by 2023 (9.4% in 2023–24)
Per Capita Income	Approximately ₹2.02 lakh	₹2.52 lakh in 2022–23
Fiscal Balance	Moderate deficits managed via revenues	Higher deficits
Unemployment Rate	~7-8% unemployment	20% unemployment spike
Inflation Rate	4-5% moderate	Rose to 6-7%

London

GSDP Growth	Real GVA growth ~4–5% (2019)	7%-8% in 2021-2022
Per Capita Income	~£63,400 in 2022	~£69,077 in 2023
Fiscal Balance	£32.5 bn surplus	£43.6 bn surplus
Unemployment Rate	~4–5% unemployment	4.4% unemployment in 2024, 6.4% in 2025
Inflation Rate	~1–2% low	~10% in 2022, 3.7% in 2025

Delhi

GSDP Growth	~8.6% CAGR	Peaked at ~9.2%; stabilized at 6–9%
Per Capita Income	₹3.89 lakh (2019–20)	₹4.6 lakh (2023–24)
Fiscal Balance	Surplus	Revenue surplus maintained & growing
Unemployment Rate	~5–6% unemployment	Dropped to ~1.9%
Inflation Rate	~4% average	~2.8% (2023), below the national average

Let’s analyze and discuss the growth prospects and outlook of the cities in the future. 

Dubai 

• Popularly known as ‘The City of the Future,’ Dubai is projected to showcase 3.3% growth in 2025 and an increase to 3.5% in 2026, as forecasted by the IMF (International Monetary Fund). 
• This city has always adopted a forward-looking vision with its plans and strategies. 
• Dubai is trying to reduce its reliance on the oil sector and focus more on other sectors, like tourism, technology, renewable energy, trade, and financial services. 
• Efforts are made towards the implementation and adoption of the Dubai Economic Agenda D33 and the Dubai Urban Master Plan 2040. 
• With D33, the city plans to double the size of its economy by 2033 and the Urban Master Plan for the sustainable urban development of Dubai. 
• A $64 billion economic boost from AI is projected by 2030, as per the Dubai State of AI report. 

Singapore 

• The economy’s 1.4% growth in the second quarter of 2025 helped to reverse the 0.5% contraction in the first few months and avoided a technical recession. 
• Singapore’s economy was recorded at 4.1% in the first three months, which unexpectedly exceeded the expectations of the 3.5% forecast and reached 4.3% in the second quarter of 2025. 
• Singapore’s Ministry of Trade and Industry reported that there is uncertainty and downside risk in the global economy in the second half of the year. 
• In 2024, the country’s GDP growth was 4.4%. The economy might slow down in the second half of 2025. 
• However, some reports suggest an optimistic approach, forecasting a 2.4% growth in GDP in 2025. 

Mumbai 

• Mumbai is expected to showcase positive growth prospects in the future, especially in the real estate and infrastructure sectors. 
• The real estate market is expected to grow in 2025 with a robust performance, followed by over 1.41 lakh property registrations.
• The ongoing metro construction will lead to increased flexibility and feasibility in transportation.
• The city will act as a key driver for the economic growth of its country. 
• Being the financial hub of Maharashtra, the city is expected to contribute to an increase in the Gross State Domestic Product (GSDP).
• Maharashtra’s nominal GDP is projected to increase to ₹49.39 lakh crore in 2025-26 from ₹45.31 lakh crore in 2024-25. 

London 

• London’s economic growth is projected to show moderate returns. The real GVA growth is reported to be 1.6% in 2025 and 1.7% in 2026, which is lower than the estimates.
• With a projected increase in population of 6.71% between 2022 and 2032, London is expected to experience an increased demand for housing and other services.
• The labor market is expected to grow at a slower pace, with workforce job increases of 0.8% in 2025 and 1.0% in 2026. 
• The overall future outlook and development pattern of the city can be considered to be moderate and slow-moving. 

Delhi 

• The capital city of India is the 12th largest among the states and union territories of India.
• The economy of the city is reported to showcase a positive and strong outlook for the future. 
• The Nominal GSDP of the NCR and the Nominal GSDP of the NCT of Delhi were estimated at 272.603 billion and ₹11.07 lakh crore (US$130 billion), respectively, for 2023-24, recording an annual growth of 9.2%.
• Delhi is witnessing a surge in sustainable construction and rapid growth in the fintech sector. These initiatives and expansions indicate a more diversified and evolving economy. 
• The city has shown a robust performance in the past few years in the post-COVID era.

From the above explanations and data interpretations, it can be deduced that in several aspects and parameters, Dubai stands tall as a good and profitable investment choice. The city’s strong infrastructure development, forward-planning strategies, and robust economic growth set it apart and at a higher level in comparison ot the other cities in the world. Moreover, the rapidly growing population due to increased migration in search of better opportunities and facilities will help further strengthen the development graph of the city.

However, the most important factor on which the choice depends is the preference and requirements that differ on an individual basis. Different people prefer different environments and carry different priorities. For some, creative infrastructure and a secure environment are important, while others may value capital appreciation and the profitability of the locations. Analyze and understand all the parameters to invest in the best city for property investment in 2025.