Invest in Dubai Property

Investing in Dubai Property

Should I Invest in Dubai Property?…This is a question asked by hundreds if not thousands of people who visit or learn about Dubai each week. The answer to this question depends on a wide range of factors including one’s personal finances as well as investment objectives. With that said, in this article, we look at why you SHOULD at least consider investing in a Dubai property and we cover some of the potential risks involved.

Dubai’s real estate market has over a short and long period proven to be a great investment vehicle for both growth and yield-focused investors. Let’s have a closer look at the top 10 reasons why investing in Dubai property is so attractive:



Why Invest in Dubai Property

Value for money

  • Compared to other global cities and business centres like London, Hong Kong, and New York, Dubai offers an unmatched price to value for investors. Entering the Dubai property market is also less costly than most other markets.

Investing in Dubai Property is Tax-Free

  • With no income or capital gains taxes, Dubai is an incredibly appealing place for savvy investors to work and invest. Anyone who has ever invested in a foreign property market and paid capital gains tax will know exactly what a huge advantage this is.


  • Unlike other global destinations, the Dubai property market is open and welcoming to all investors. This makes investing in Dubai real estate rather easy and accessible to potential buyers from just about anywhere in the world. This valuable attribute makes it simple, safe, and streamlined to conduct real estate transactions no matter your country of origin or citizenship. This diversity of buyers provides Dubai property prices with an added layer of protection as it’s not only dependent on one country and its economic conditions. In just the first half of 2016, total investment transactions reached Dh57 billion from 26,000 investors who were made up of 149 different nationalities.

Central Location

  • Dubai’s unique and central geographical location makes it accessible and appealing to international investors. With direct links to and from most of the world’s biggest cities, it is no wonder Dubai Airport (DXB) was the world’s busiest airport in 2022. Investing in Dubai property is safeguarded by this exposure as it provides Dubai with buyers from a multitude of countries.

Rapid Growth

  • Dubai is, has been, and continues to be one of the fastest-growing cities in the world. It has a resilient and diversified economy that’s far less dependent on oil and much more driven by industries such as tourism, finance, and real estate.


  • There are very few if any places in the world that offer better incentives for individuals and companies considering doing business in Dubai. With best-in-class infrastructure and tax incentives across all industries, the government has created a mutually-beneficial business-friendly platform. This unique mix is virtually unmatched anywhere else in the world.

Return on Investment

  • Aside from being a tax-free investment, Dubai property also comes with great capital appreciation and above-average ROI. The average rent return on offer hovers around 7% in the main areas of Dubai but is as much as 10% in certain areas. With bank interest loans hovering under 4%, this makes investing in Dubai property attractive for both finance as well as cash buyers.

Quality of Life

  • With superb weather, a low crime rate, amazing architecture, and infrastructure the quality of life attainable in Dubai is hard to beat. With some of the best cultural, retail, and dining options, Dubai offers a great quality of life rivaling countries like Canada and Australia.

Stability of Government

  • Considered one of the most stable countries in the Middle East, Dubai is known for having a stable political climate and a strong legal system. This provides investors of kinds with a sense of security and confidence when investing for both the short and long term.


  •  Unlike numerous other investment options which may be difficult to truly diversify, property – as a hybrid asset – allows you to take control over your portfolio and risk profile.

Population Growth

  • Dubai is not only one of the fastest growing cities in the world when it comes to economy and infrastructure but also population. The city’s population as of mid-2023 is 3.2 million, a figure which is expected to double by 2020. Such rapid population growth can only have a positive effect on property prices as demand continues to increase.

Choice of properties and developers

  • Much like its population Dubai has huge diversity when it comes to areas and developers. This gives investors a healthy choice of areas and properties to choose from depending on their investing goals and returns. From world-renowned developers like Emaar to world-renowned areas like Palm Jumeirah investors are simply spoilt for choice.

Low Property Transaction Costs

The fees associated with buying real estate in Dubai are considerably lower than that of most Western countries. The total cost of acquisition is under 6.5% whilst the act of selling comes at almost no cost at all. This provides owners with a great level of flexibility to purchase and sell their Dubai property quickly and when desired.

Now that you are familiar with a few of the many reasons why investing in Dubai property makes financial sense, check out our Buying Off-Plan Guide.

Investing in Dubai Property – Potential Risks

No investment worth investing in comes without risks and the same can be said about property. In keeping with the theme of this page here we take a look at some of the potential risks unique to buying Dubai property for the purpose of investment.

Transit Population

Unlike most of the world’s cities, the population of Dubai is made up of mostly expats. Expats who live and work in Dubai but don’t necessarily have family-seeded roots in Dubai. This makes Dubai particularly vulnerable to depopulation should economic conditions change and work opportunities dry up.

Volatile Market conditions and prices

Dubai’s real estate market can and has in the past been somewhat volatile. Whilst the market has grown substantially over the medium to long term, there have been certain periods where prices have risen and fallen quickly. This happens everywhere in the world and is especially risky for speculative investors who look to get in and out in a short period of time. A short-term investment strategy is considered a form of gambling but most property experts and isn’t something widely recommended.

Investing in Dubai Property – Potential Benefits

In this article, we have already covered some of the main reasons why you should consider investing in Dubai real estate so the potential benefits are rather obvious.


There are many reasons why we invest but ultimately it comes down to building wealth. When done correctly, investing in Dubai property can be extremely profitable. Literally, thousands of investors have built tremendous amounts of wealth by inventing in Dubai property and accelerated that process by not having to pay any tax. A benefit that cannot be overstated enough as it is one of the biggest obstacles to getting ahead and getting ahead quickly.

Financial Freedom

Whilst it’s true that some investors are always looking to build their wealth it’s also true that some simply want financial freedom. Freedom to get the things they want and not have to work in a job they don’t necessarily like. A good investment strategy executed well can bring that financial freedom and have a huge impact on quality of life you live.

How to invest in Dubai property

There are a number of ways to invest in Dubai property. The two most common way is to buy a ready or an off-plan property.

A ready property is one that is already completed and can include everything from an apartment to a large villa. An off-plan property on the other hand is a property that is planned for construction or already under construction.

The process of investing in either type of property is somewhat similar with some differences.

Investing in a Ready Property:

Investing in an Off Plan Property:

Investing in Dubai Property FAQ’s

Is there a property tax in Dubai?

No, there is no property tax in Dubai. This applies to both capital gains/appreciation and any rental income received. As an example, if you were to purchase a property for say 1 million today and sell it for 2 million in 5 years’ time. There would be no tax payable. This is very different to most Western countries where the tax would be payable on the capital gains amount which in this case would be 1 million.

Can anyone invest in Dubai Property?

Yes. Anyone over the age of 18 can purchase property in Dubai. This includes buyers from all countries from all over the world.

Is it good to invest in Dubai?

Yes, it most certainly can be. Investing in Dubai property has proven to be a great decision for many buyers however just like any investment isn’t without risk.