The numbers

Investors often grapple with choosing between asset classes. Real estate stands out for its stability and consistent returns. Unlike the stock market, which can be volatile, or cryptocurrencies, known for their speculative nature, real estate provides a tangible asset that appreciates over time. Moreover, it acts as a safeguard against inflation, ensuring that your investment retains its value.

Real estate investments have consistently proven to be a perfect balance of attractive returns and moderate to low volatility, making them one of the most reliable and sought-after asset classes in any investor’s portfolio.

Real life examples outperform 20% ROI in many cases

Don’t just take our word for it. All property transactions in Dubai are listed in the Dubai Land Department database and are publicly accessible through various platforms. Listing and resale prices are readily available, and in many cases, the returns significantly exceed the 20% threshold. However, outcomes can vary depending on the area and specific project, which is why making informed investment decisions requires extensive research and in-depth market knowledge. That’s where we come in—let us guide you to maximize your investment potential!

Source: Knightfrank Dubai Resicential Market Report Q3 2024.   2 Dubai Land Department

Dubai is popular as a safe haven for many high net worth individuals and celebrities

Check out which other celebrities call Dubai their home: https://sothebysrealty.ae/the-journal/celebrities-who-live-in-dubai/

UAE GOLDEN VISA

GOLDEN VISA FOR REAL ESTATE INVESTORS

Minimum investment of AED 2 million (approximately USD 550,000)

BENEFITS

  • The right to live in any of the seven emirates of the UAE

  • Tax benefits

    • Golden Visa holders enjoy tax-free income for 5–10 years 

    • The UAE has no income tax, gifts, or inheritance taxes 

    • Businesses in tax-free zones have no corporate taxes 

    Healthcare 

    • Golden Visa holders have access to quality healthcare

    • The Esaad privilege card offers discounts at certain healthcare providers

    Family sponsorship

    • Golden Visa holders can sponsor family members and domestic help 

    • Family members can move to the UAE with the holder 

    Business opportunities 

    • Entrepreneurs and investors can access tax-free zones

    • The UAE property market can be a profitable investment

    Longer residency

    • The Golden Visa offers up to 10 years of residency 

    • Holders can stay outside the UAE for extended periods without losing residency 

    Multiple entry visa 

    • The Golden Visa is a multiple-entry visa, allowing holders to reenter the UAE multiple times without applying for a new visa

    No sponsor required 

    • The Golden Visa doesn't require a local sponsor

Dubai is the global leader in luxury property sales

Source: Knight Frank  2024 Dubai report

Source: Dubai Residential Market Review. Knight Frank Q4 2024

A recently approved plan will see 634km of new roads constructed in the emirate of Dubai over the next five years, costing Dhs4.6 billion.

The ‘2024-2027 Main Roads Development Plan’ will add 22 projects across the emirate’s expanding road network, benefiting over six million people and supporting Dubai’s comprehensive development plans, it has been revealed.

Gross Rental Yield - Evaluating your investment

A "good" gross rental yield generally falls between 5% and 10%, with many investors aiming for a yield closer to 7% or higher, depending on the specific market and property type. Dubai's average gross rental yield is between 6% and 10% (depending on property location and type). This is higher than other major global cities, making Dubai a popular choice for real estate investors.

Key points about gross rental yields:

  • Higher is better:

    A higher gross rental yield generally indicates a better potential return on investment. 

  • Market dependent:

    What is considered a "good" yield varies based on the local real estate market. 

How to evaluate a rental yield 

  • A higher gross rental yield generally indicates a better investment.

  • However, it doesn't account for expenses, so it should be used as an initial screening tool.

  • Investors look for gross rental yields of 7% to 10% or higher, depending on the market.

Use our Real Estate Investment Calculator below to calculate your gross rental yield. The following major UAE property listing websites will give you a good idea of the expected rental income as an input for below’s calculation.

Common misconceptions about investing in Dubai

Despite a steadily growing population, multi-billion government investments, a proven investor track record and unmatched ROIs, most first-time investors are understandably cautious. Below we are listing the most common objections and questions we have so far encountered and offer our humble view on all of them.

  • Dubai’s real estate market is underpinned by strong fundamentals, including sustained population growth, diversified economic initiatives like the D33 agenda, and increasing demand for luxury properties. With tight regulatory controls by the Dubai Land Department (DLD) and consistent year-on-year growth (18% villa price increases in 2024), the market shows no signs of unsustainable speculative behavior.

  • Dubai has maintained a politically neutral stance, ensuring stability amid regional turmoil. It consistently ranks among the world’s safest cities due to its low crime rates, stringent law enforcement, and robust economic policies. These factors make it a haven for investors, much like Switzerland during times of global uncertainty.

  • Unlike stocks or cryptocurrencies, Dubai real estate is a tangible asset that provides stability and consistent returns. The market is well-regulated, with rental yields of 6-7% and an 18% growth in villa prices in 2024, demonstrating resilience and long-term growth potential. This is bolstered by Dubai’s role as a global hub for HNWIs and its continued population growth.

  • While it’s true that off-plan properties come with an element of uncertainty, Dubai’s real estate market is supported by robust regulations and oversight by the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA). Developers are required to meet strict guidelines, including maintaining escrow accounts for every project, which ensures that funds are used exclusively for the development of the specific property.

    While concerns about delivery timelines for off-plan properties are understandable, recent data underscores the robustness of Dubai’s real estate market:

    • In 2024, Dubai’s real estate sector achieved a record-breaking 180,987 transactions worth AED 522.5 billion, marking a 36.5% increase in volume and a 27.2% increase in value compared to 2023.

    • The off-plan segment was a significant contributor, accounting for 60.5% of total transactions, up from 43.6% the previous year, indicating strong investor confidence in timely project completions. 

    Source: Construction Weekly

  • While Dubai has a vibrant real estate pipeline, its rapidly growing population and influx of high-net-worth individuals ensure sustained demand. By 2040, Dubai projects the need for an additional 500,000 residential units to accommodate growth. Strategic planning by the Dubai Land Department prevents oversupply in key segments, particularly luxury properties, ensuring price stability.

  • The UAE allows full repatriation of capital and profits, ensuring that your investment is liquid and accessible. With a transparent regulatory framework, supported by internationally recognized legal protections, investors can confidently transfer their returns and funds without restrictions or additional taxes.

  • Dubai’s top developers, including Emaar and Nakheel, adhere to rigorous construction standards and utilize cutting-edge architectural technologies. The city boasts world-class properties, many recognized internationally for their design and quality. Properties are priced competitively, offering greater value per square meter compared to Europe’s inflated markets like London or Paris.

Needless to say - Big investments require proper due diligence. We encourage every investor to research, compare offers and collect as much data as possible before they make their final decision. We offer our services based on years of market experience. We have seen investors come and go. We have seen the trends and we have a pretty good understanding of which project is promising and which is not. We would love to share those insights with you.