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The best properties in Dubai for investment and stable rental income

best properties in Dubai for investment

More and more foreigners prefer to invest in Dubai real property. This is an affordable way not only to save, but also to increase funds. Both ready-made housing and off plan property in Dubai are in the same demand. Let’s consider what is more profitable to invest in this year.

Why Investing in Dubai Property is Profitable

There are several reasons, which include:

  • Relatively affordable prices. The housing stock of coastal European resorts or megacities is much more expensive.
  • High profitability ratio. If it barely exceeds 3% per annum in London, then this figure is much higher in Dubai.
  • A decent quality of life and climatic conditions ensure stable demand for housing stock. About 90% of the metropolis population are expats, by no means all of them are ready to purchase real property, especially when it comes to freelancers or workers on a limited-time contract. Therefore, apartments are successfully rented not only to vacationers.
  • No taxes. Owners of flats and apartments do not pay taxes on income received from rent. This permits to receive a net profit legally.
  • Annual capitalization of the property value. The last few years have clearly demonstrated the rise in housing prices in Dubai. Therefore, it can be resold at any time with a guaranteed profit.

What overseas real property is worth investing in

Up to 2020, the leading type of buy-to-let housing was studio apartments. They were profitable for investors due to their low cost, and tenants chose this format because of the most affordable rent. The pandemic has broken the mold, and there is a growing demand for isolated or spacious housing in which you can live a comfortable lifestyle.

Already in 2021, villa rental rates have increased by about 15%. Therefore, it can be confidently said that any property in Dubai finds its owner and makes a profit. The latter largely depends not on the type of property, but on its place and quality, as well as the availability of infrastructure in the district. Communities that are in demand include:

  • Dubai Marina;
  • Palm Jumeirah;
  • Downtown Dubai;
  • City Walk;
  • Business Bay.

Tenants prefer to choose apartments or houses on the coast or in the central districts of the emirate.

Potential gain from renting Dubai property

According to the analytical agency Property Monitor, you can get from 3.73 to 9.76% per year from renting out real property in the emirate.  Specific amounts depend on the market situation and on the location of housing. So, with the opening of «Expo 2020», the demand for real property in the central districts near the exhibition has grown significantly. You can get acquainted with the lattest offers from developers and local real estate agencies on the website The catalog contains both ready-made houses and apartments, as well as off-plan real property.