Among all the countries that offer real estate investment opportunities, the UAE and the USA can be considered two of the most promising markets. The two countries have their strengths, drawbacks, and the main differences lie in market characteristics and their stability, returns on investment, rules, and growth prospects. It is important for investors to grasp these differences as they relate to the returns on their investment.  



Market Environment and Stability of Economy  
The USA can boast of having a well-developed and quite liberal real estate market. The overall demand in the U. S. real estate market has always been very strong on account of growth in population, increasing trends in urbanisation and strong employment market. This stability therefore makes the U. S. a safe investment for the risk adverse investor who is seeking to invest in a country where he or she’s sure their money is secure.  

However, the UAE and especially Dubai have a younger, but growing real estate market that is rapidly being developed. The economy of the country has changed a lot in the last decade, while focusing on investing sectors, and real estate. The opportunities for long term residency, practice of freehold property for foreigners became a part of the UAE government policy. However, UAE market is a little more volatile in terms of economic and political factors than US market.  



Return on Investment (ROI) and Rental Yields  
Capital appreciation is considered to be one of the key areas where the American real estate market is ahead. In the major cities like New York, San Francisco, or Miami, the property value has normally risen year after year, which means that investors have seen their properties rise in value quite significantly. The stability of the market of the United States and reliable expectation of capital gains makes the United States more attractive for investors who have long term objectives of wealth creation.  

Among the most important factors influencing demand for the UAE real estate, one can identify high rental rates. Currently, Dubai has some of the biggest rental yields in the world pegged between 5% and 10% for residential properties depending on the area and the type of home. This is way above the yields that are common in most American cities that sit at an average of 2-5%. That is why for those investors who in one or another way are interested in high cash flow, the UAE offers unique opportunities.  



Legal Framework and Ownership Rights  
Real estate investment in USA is well protected by law. Foreign investors in the U.S are given the same property rights as local investors with limited restrictions which makes the market in the United States is most preferred by international investors.  

In the recent years, the UAE has come a long way in the improvement of its legal basis. The laws regarding foreign investment allow them to own freehold land in some area and new long-term visas are now in place giving more security to property investors. Nevertheless, the UAE law is still developing, and one should consider legal peculiarities and possible risks connected to the property management in the country.