Dubai vs The Netherlands: Where Can You Earn More with Studio Investments?

In the Netherlands, I spent years working in rental services for expats, and one of my key clients was a major investor with no less than 220 units in their portfolio. A large portion of these units consisted of studios. Now, in 2025, these studios yield the highest price per square meter upon sale. Why? Simply because buying homes has become unaffordable and scarce. A 25 m² studio in The Hague now costs €195,000, equating to €8,000 per m². These exorbitant prices are driven by limited financing options and the small budgets of first-time buyers. Demand is high, supply is minimal, and even expats who used to rent are now entering the buyers' market.

The Situation in Dubai

A similar development is currently unfolding in Dubai. Of the 250,000 expats who migrate to Dubai each year, 14% are single. This group often seeks smaller homes in prime locations with extensive amenities, close to metro stations and parking facilities. To meet this demand, entire districts are being developed specifically for studios, such as Studio City, Sports City, Motor City, and Jumeirah Village Circle (JVC). Moreover, these areas are freezones, meaning you can also establish a business there – a unique opportunity not available in all neighborhoods. Additionally, these districts are only a 25-minute drive from Al Maktoum International Airport, one of the largest airports in the world.

Secondary vs. New: Studios in Dubai

Existing studios in Dubai can hardly compete with the new developments in terms of amenities and appearance. Older buildings typically offer four basic amenities: a manned reception, a swimming pool, a gym, and a parking garage. The studios themselves are often outdated and lack the ‘wow factor’, both inside and out.

In contrast, the newly built studios offer unparalleled luxury. The amenities are so extensive that you practically never have to leave the building for entertainment. Think of infinity pools, modern gyms, saunas, yoga rooms, and even private cinemas. A recent project even includes a 120-meter-long lazy river designed to mimic the feel of a resort. Additionally, paddle courts are often present, and valet parking is standard.

Low Service Costs, High Quality

In the Netherlands, service costs often go toward outdated maintenance, such as replacing elevators or barriers. In Dubai, however, you get far more value for your money. The average service costs in Dubai amount to €43 per m² per year. For a 35 m² studio, this translates to just €125 per month. Moreover, the facilities are of top quality, contributing to the convenience and comfort of residents.

Innovative Technology: The Home App

A notable difference between living in Dubai and the Netherlands is the use of technology. Many new buildings in Dubai offer a home app that allows you to control various functions remotely. You can unlock the door via your smartphone, turn on the air conditioning before you arrive, start the washing machine, and even open the barrier to the parking garage. Additionally, you can use the app to book amenities such as the cinema, yoga room, or a personal trainer.

High-Quality Furnished Studios

New studios are often delivered fully furnished, with finishes you would expect in a five-star hotel. Think of wall panels with dimmable LED strips, high-end built-in wardrobes made of dark glass and matte steel, and luxurious ceiling fixtures. This level of quality is unprecedented in Europe at this price range. Many of these studios are rented out immediately after completion via platforms such as Airbnb, with rental prices around €1,500 per month for expats or €2,500 for short-term rentals.

Returns and Tax Benefits

A newly built studio in Dubai, including a 4% transfer tax, costs approximately €171,600, while a comparable studio in the Netherlands easily costs €240,000. Rental income in Dubai is significantly higher, and service costs are comparable, but the amenities and living comfort are on a completely different level. Moreover, there is currently no tax on rental income or personal wealth in Dubai. Even if this changes in the future, the returns remain attractive.

Economic Outlook and Risks

Dubai’s economy is growing rapidly, driven by cheap raw materials, affordable labor, fewer regulations, an ambitious government with plans extending to 2050, and excellent infrastructure. With a projected population of 7 million and a low risk of a housing bubble according to the latest UBS report, Dubai offers unique opportunities for real estate investors.

Summary: The Netherlands vs. Dubai

• The Netherlands: A 20 m² studio costs approximately €240,000, including transfer tax, and yields €500 per month in bare rent according to the point system. Service costs are relatively high, and amenities are minimal.
• Dubai: A newly built 35 m² studio costs €171,600, including a 4% transfer tax. Monthly rental income is around €1,500 (€2,500 via Airbnb), and service costs are just €125 per month. Additionally, the building offers dozens of high-quality amenities, and the living environment is modern and luxurious.

For real estate investors, Dubai is a paradise with high returns, low costs, and a tax-friendly environment. Nowhere else in the world can you find this level of luxury and comfort for a comparable price.

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