UAE Real Estate Investment Options: Useful Tips and More

8:52 pm  |  21.08.2023

The types of real estate investment in Dubai available to foreign investors, the potential yield from resale or rental, and the central myths about buying housing in the UAE.

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The UAE real estate sector has been among the most popular destinations for foreign investors for more than 20 years. Dubai’s real estate market has already recorded the highest volume of transactions in the last 14 years, and experts predict that sales will surpass all records. The sector is also expected to grow at an annual rate of over 8 percent over the next five years.

READ: Where Millionaires Live: Dubai’s Most Luxurious Areas

Foreign investors choose the real estate market of the Emirates due to the stable and strong economy of the country, the stability of the local currency, and the high level of security. In addition, Dubai’s real estate sector offers investors a unique range of products in the primary and secondary markets – in terms of type and price range.

In this article, we will consider all options that are available in the UAE real estate market to foreign investors and the potential profitability of resale or leasing for each of these objects.

Real Estate Investment Options in the UAE

Independent international experts predict that by 2023, residential property prices in Dubai will rise by 5-7% in the budget segment and reach 12-15% in the premium class. Given the unstable global economic and political environment, such prospects, combined with the dirham’s stable exchange rate, make buying property in Dubai one of the most effective ways to protect capital from inflation.

Moreover, such investments not only save but also increase, their savings – with a smart investment strategy, net returns can reach 100% in a few years.

Today private investors can choose the right option from many types of real estate in different price categories:

  • Studios and apartments in apartment complexes.
  • Penthouses.
  • Serviced apartments and hotel rooms.
  • Townhouses.
  • Villas.

Note: Property leases in Dubai are strictly controlled by the government. All contracts must be registered with the Dubai Real Estate Regulatory Agency (RERA).

For investors who want to make larger investments, there are also options such as:

  • «Wholesale» purchases – multi-story complex or all the building.
  • Land for own development;
  • Investment in joint ventures with UAE developers.

Investment Opportunities 

Finished real estate is much more expensive than under construction, but it allows you to immediately after the transaction to start making profits. In addition, when buying such an apartment worth AED 750,000 (USD 204,000), a foreign investor gets the opportunity to apply for a visa resident of the UAE.

Finished real estate is much more expensive than under construction.

The level of potential income from finished real estate will depend on its type and layout, amenities in the residential complex, area, surrounding infrastructure, proximity to attractions, and other factors. An experienced broker will help you consider all the nuances and select an object that will allow you to get the maximum income according to your goals. Dubai’s ready-to-sell property market offers three main profit options:

  • Profit from renting out private dwellings.
  • Profit from a hotel room under the management of the hotel brand.
  • Profit from the resale of the facility.

Rental Business in Dubai

In the case of long-term leasing the investor can expect on average 5-8% of annual net profit, in the case of short-term leases, this number rises to 11-14%. Professional property management services are available to maximize income. Experienced specialists will help to draw up an investment strategy, set the optimal rent, and if necessary, carry out major or minor repairs and furnishing of the premises to increase the attractiveness of the house and the cost of rent. 

READ: 4 Districts You Shouldn’t Invest In: Prices Are Falling

Hotel Rooms Managed by Brand

When buying a room (or apartment) in the hotel, the investor can count on ROI at up to 5-9% per annum. The process is partly similar to the private property management service described above. The operator who manages the hotel assumes all the functions of room maintenance, check-in, etc. The property owner gets his share of the profits from the hotel management company.  In addition, often the contract provides for the possibility of personal use of the number by the investor for a certain number of days a year.

READ: Where East and West Meet: Millionaires Feel Comfortable in the UAE


Dubai is considered one of the best family-friendly cities in the world and is known for its ultra-luxury entertainment and amenities, often associated with unaffordable luxury. In fact, the housing market in the emirate is characterized by a huge variety. You can buy a studio or 1 bedroom apartment in a residential complex with a swimming pool, gym, and playground for150 000-200000 dollars. 

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