Dubai ($39/sqft, 5.8% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Dubai on rent and tax and Tokyo on talent depth.
Dubai ($39/sqft, 5.8% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Dubai on rent and tax and Tokyo on talent depth.
| Metric | Dubai | Tokyo |
|---|---|---|
| Region | EMEA | APAC |
| Country | United Arab Emirates | Japan |
| Class A rent (USD/sqft/yr) | $39 | $113 |
| Class A rent (local) | 145 AED | 50000 JPY |
| Vacancy | 5.8% | 4.6% |
| Trend | rising | rising |
| Prime yield | 7.5% | 3% |
| Premium flex / seat / month (USD) | $980 | $980 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 9% | 30.6% |
| Metric | Dubai | Tokyo |
|---|---|---|
| Typical term | 3 yrs | 5 yrs |
| Typical rent-free | 3 mos | 4 mos |
| Lease norms | Standard lease 3 years with annual rent escalators (typically 5%) and a renewal option. Service charges billed separately. Security deposit of 5-10% standard. Ejari (lease registration) is mandatory. | Tokyo leases are typically 5-7 years with a 2-year tenant notice. Standard leases are 'fixed-term' (teiki shakuya) or 'ordinary' (futsu shakuya) — fixed-term is increasingly common for Grade A. Rent is base + common-area maintenance billed separately. Restoration to original (genjo kaifuku) is contractual and significant. Personal seal (jitsuin) requirements apply. |
| Tax note | Federal corporate tax of 9% on profits over AED 375,000 — applied since 2023. No personal income tax. No VAT on commercial leases (5% VAT on most other goods/services). | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Dubai | Tokyo |
|---|---|---|
| Talent index (0–100) | 78 | 84 |
| Talent note | Deepest cross-border financial-services and consulting talent pool in the Middle East. Average all-in compensation indexes 78. | The largest single-language white-collar talent pool in the world. Average all-in compensation for senior knowledge workers indexes 84 vs. New York's 100, though English-fluent bilingual talent commands a premium. |
Dubai: Dubai Metro Red Line connects DIFC, Downtown, Internet City. Etihad Rail commuter network is in development.
Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Dubai is the cheaper Class A market on a USD basis.
Tokyo has the deeper talent index (84/100 vs 78/100).
Dubai has the lower headline corporate tax (9% vs 30.6%). Local incentives can change the effective rate materially.
Dubai typical term is 3 years with 3 months free; Tokyo runs 5 years with 4 months free.
Dubai: Dubai Metro Red Line connects DIFC, Downtown, Internet City. Etihad Rail commuter network is in development. Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Score Dubai, Tokyo and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.