Dubai Property Investment Guide
0% capital gains tax. 0% rental income tax. Gross yields of 6-8%. The numbers speak for themselves.
Why Dubai for Property Investment?
Dubai offers international investors what few markets can match: zero property taxes, strong yields, and a pathway to residency. Here's why sophisticated investors are allocating to Dubai real estate.
Zero Tax on Gains
Sell your property for a profit and keep 100%. No capital gains tax, no inheritance tax, no annual property tax. Compare that to 18-28% CGT in the UK or up to 45% in Germany.
Strong Rental Yields
Gross rental yields of 6-8% are achievable across Dubai's freehold areas. JVC and Dubai Sports City often exceed 7%. Premium areas like Downtown and Palm yield 5-6%.
Market Stability
Dubai's real estate market is regulated by the Dubai Land Department (DLD) and RERA. Escrow accounts protect off-plan buyers. Transparent ownership records. Strong legal framework for foreign investors.
Golden Visa Eligibility
Invest AED 2 million (approx. USD 545,000 or GBP 430,000) and qualify for a 10-year residency visa. Live, work, and bank in the UAE. No minimum stay requirements.
Sources: Knight Frank UAE Market Report 2024, JLL Dubai Real Estate Market Review Q4 2024, Bayut Market Report.
ROI Breakdown by Property Type
Returns vary significantly by property type and investment strategy. Here's what to expect from different Dubai property investments.
| Property Type | Gross Yield* | Est. Net Yield* | Key Considerations |
|---|---|---|---|
| Apartments (Ready) | 6-8% | 5-6.5% | Fastest rental. Lower entry cost. Service charges apply. |
| Villas (Ready) | 4-6% | 3.5-5% | Higher capital appreciation potential. Larger maintenance costs. |
| Off-Plan Apartments | 7-10% | 6-8% | Payment plans available. Capital growth during construction. Handover risk. |
| Off-Plan Villas | 5-7% | 4-5.5% | Prime locations often sold off-plan first. Longer construction timelines. |
| Short-Term Rental | 8-12% | 6-9% | Higher management effort. Seasonal fluctuations. DTCM license required. |
Sources: Bayut & Dubizzle Rental Market Report 2024, Knight Frank UAE Q4 2024, JLL Dubai Market Review.
Investment Process Timeline
From initial research to rental income or resale, here's what the typical Dubai property investment journey looks like.
Research & Selection
Identify your investment goals, budget, and target areas.
- Define strategy: rental yield vs capital growth
- Research areas and developers
- Connect with registered agents
- Virtual or in-person viewings
Purchase & Transfer
Secure the property and complete legal transfer.
- Sign MOU and pay 10% deposit
- Transfer funds (use FX specialist)
- NOC from developer
- DLD registration (4% fee)
Rental or Resale
Generate returns through rental income or capital appreciation.
- List with property management
- EJARI contract registration
- Collect rental income (AED)
- Optional: resale after appreciation
Timeline based on typical ready property transactions. Off-plan purchases involve additional construction period (1-4 years).
Cost Breakdown: What You'll Pay
Understanding the full cost of buying in Dubai is essential for accurate ROI calculations. Here's every fee you'll encounter.
| Fee Type | Rate / Amount | When Paid | Notes |
|---|---|---|---|
| DLD Registration Fee | 4% | At transfer | Required Paid to Dubai Land Department at title transfer |
| Agent Commission | 2% | At transfer | Required Buyer typically pays agent fee in Dubai |
| DLD Admin Fee | AED 580 | At transfer | Fixed fee for registration processing |
| Trustee Office Fee | AED 4,000 | At transfer | Title deed processing (approx.) |
| NOC Fee | AED 500-5,000 | Before transfer | No Objection Certificate from developer (varies) |
| Service Charges | AED 12-25/sq ft/yr | Annual | Building maintenance, facilities, security |
| DEWA Deposit | AED 2,000-4,000 | At move-in | Refundable electricity/water deposit |
Example: AED 1.5M Apartment Purchase
Note: Mortgage transactions incur additional bank fees (typically 0.25-1% of loan value). Service charges vary significantly by building and area.
Financing Options: Cash vs Mortgage
Most international buyers purchase cash, but UAE mortgages are available to non-residents. Here's how to decide.
Cash Purchase
The preferred route for international investors. No mortgage approval needed, faster completion, and full equity from day one.
- Faster transaction (2-4 weeks)
- No income verification required
- Stronger negotiating position
- No interest payments
- Easier for non-residents
- Higher capital requirement
- Opportunity cost on tied-up funds
UAE Mortgage
Available to non-residents from UAE banks. Requires income verification and has LTV limits, but preserves capital.
- Preserve capital for diversification
- Leverage can boost ROI
- Interest rates from 4.5-6%
- Lower LTV for non-residents (50-75%)
- Income documentation required
- Longer approval process
- Bank fees add ~1% to costs
Mortgage LTV Limits for Non-Residents
UAE Central Bank regulations set maximum loan-to-value ratios based on property value and buyer status.
| Buyer Type | Property Value | Max LTV | Min Deposit |
|---|---|---|---|
| Non-resident (first property) | Below AED 5M | 75% | 25% |
| Non-resident (first property) | AED 5M and above | 65% | 35% |
| Non-resident (second property) | Any value | 60% | 40% |
| Non-resident (off-plan) | Any value | 50% | 50% |
Sources: UAE Central Bank regulations, HSBC UAE, Emirates NBD, Mashreq Bank mortgage guidelines.
Risk Factors to Consider
Every investment carries risk. Understanding these factors—and how to mitigate them—is essential for making informed decisions about Dubai property.
Market Cycles
Property markets move in cycles. Dubai experienced significant corrections in 2009 and 2014-2016. While the market has recovered strongly, past performance is not indicative of future results.
Currency Risk
The UAE Dirham is pegged to the US Dollar (1 USD = 3.6725 AED). If your home currency weakens against USD, your investment value increases in home currency terms—but the reverse is also true.
Liquidity Constraints
Property is not a liquid asset. Selling a Dubai property typically takes 2-6 months. In a downturn, it could take longer or require accepting a lower price.
Off-Plan Delays
Off-plan properties may experience construction delays. While UAE law protects buyers (escrow accounts, RERA registration), handover dates can slip by 6-18 months in some cases.
Transferring Funds to Dubai? Save on Currency Exchange
On a £500,000 property purchase, the difference between your bank's exchange rate and a specialist provider can be significant. Here's why most investors use FX specialists.
High Street Bank
Typical markup on mid-market rate
3-5% spread
FX Specialist
Typical markup on mid-market rate
0.3-1% spread
On a £500,000 transfer, that's a potential saving of £10,000-£20,000 using an FX specialist vs a high street bank.
Compare Exchange RatesFrequently Asked Questions
What is the minimum investment for Dubai property?
There is no legal minimum investment for foreigners to buy property in Dubai's designated freehold areas. Studio apartments in emerging areas start from around AED 400,000-500,000. However, to qualify for a Golden Visa through property investment, you need at least AED 2,000,000 in property value.
What are the typical gross rental yields in Dubai?
Gross rental yields in Dubai typically range from 5-8% depending on property type and location. Apartments generally yield 6-8%, with areas like JVC and Dubai Silicon Oasis at the higher end. Villas typically yield 4-6%. Net yields after service charges and vacancy periods are usually 1-2% lower than gross yields.
What fees do I pay when buying Dubai property?
The main fees are: Dubai Land Department (DLD) registration fee of 4% of purchase price, agent commission of 2%, DLD admin fee of AED 580, trustee office fee around AED 4,000, and NOC fee of AED 500-5,000. Total acquisition costs are typically 6-7% on top of the purchase price.
Can foreigners get a mortgage in Dubai?
Yes, non-resident foreigners can get mortgages from UAE banks. Typical loan-to-value (LTV) ratios are: 75% for first property under AED 5M, 65% for properties AED 5M and above, 60% for second properties, and 50% for off-plan. You'll need proof of income, bank statements, and identification documents.
Is Dubai property a good investment in 2026?
Dubai property offers several advantages: 0% capital gains tax, 0% rental income tax, 6-8% gross yields (higher than most Western markets), Golden Visa eligibility at AED 2M, and strong demand from expats and investors. However, like any property investment, it carries risks including market cycles, currency fluctuation, and liquidity constraints. Always conduct thorough due diligence.
How does the Golden Visa work for property investors?
The UAE Golden Visa is a 10-year renewable residency visa available to property investors who own property worth at least AED 2,000,000 based on Dubai Land Department valuation. You can combine multiple properties to reach the threshold. Mortgaged properties now qualify since January 2024. The visa allows you to live, work, and sponsor family members in the UAE.
Legal Disclaimer
This guide is for informational purposes only and does not constitute financial, tax, or legal advice. Property investment carries risks including loss of capital. Exchange rates fluctuate and past performance is not indicative of future results. Consult qualified property advisors, tax specialists, and legal professionals in your jurisdiction before making investment decisions. MyCurrencyTransfer is a comparison service and does not provide property purchasing services.
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