Dubai real estate has grown over the years, thanks to the investment-friendly policies like zero capital gains and rental income tax. Both locals and expats invest in Dubai real estate due to the strong infrastructure, high security, and a perfect cosmopolitan city vibe.
For many residents, buying an apartment is much more feasible, due to its lower cost, compared to villas. Also, apartments offer a sense of community, with many shared amenities in the buildings.
Buying a flat in Dubai gives you ownership and several other perks, which are better than renting.
Dubai’s residential market offers apartments for everyone. Many professionals, students, and individuals chose studio apartments. Meanwhile, couples and families look for 1, 2, and 3-bedroom flats.
Apartments boast a high rental yield, ranging between 5% to a whopping 8% in some neighbourhoods. Here are the average prices of apartments sold in Dubai as per the DLD transaction data:
Apartment Type | Average Price | Rental Yield |
Studio | AED 790,000 | ~7.4% |
1-Bedroom | AED 1,500,000 | ~6.3% |
2-Bedroom | AED 2,700,000 | ~5.4% |
3-Bedroom | AED 5,600,000 | ~4.9% |
Golden visa, high returns, and zero tax make Dubai one of the best cities in the world to invest in apartments.
Apartments can turn out to be a great investment, with an average rental return of up to 8%, with some communities offering even more. Also, the real estate price appreciation will contribute to capital gains.
When you purchase a property, you can get a residency visa for two years. If you invest more than AED 2 million in real estate, you can get a Golden Visa with a 10-year validity.
Off-plan projects are a great investment with higher capital appreciation. Also, you can get flexible payment plans when you buy an off-plan apartment.
You have to pay no tax on property. Be it capital gains or rental returns, you don’t have to pay a single dirham, making Dubai the best real estate investment hub.
Dubai has a safe and secure environment. The city offers all the amenities and facilities to live a high-standard lifestyle. You can buy an apartment with a seaview or live in a high-rise building to get a complete city view. Also, the buildings have gyms, swimming pools, and entertainment to facilitate an all-season lifestyle.
Expats can actually own property in freehold areas for a lifetime. It gives buyers the same rights as the locals.
Dubai is synonymous with luxury. You can find apartments of all categories. That said, here are some of the best luxury areas to buy an apartment in the city:
Palm Jumeirah
Dubai Marina
Downtown Dubai
Jumeirah Beach Residence (JBR)
Umm Suqeim
Alongside luxury apartments, you can explore areas with budget-friendly flats. These include the following:
International City
Dubai Silicon Oasis
DAMAC Hills
Dubai South
Dubai Sports City
Yes, foreigners can buy an apartment for sale in Dubai as per the law. However, they can only purchase in the designated freehold areas. There’s no restriction on any nationality.
Off-plan properties can turn out to be a great investment for those seeking flexible payment options, long-term capital gains, and affordable real estate investment opportunities.
Yes, when you buy a property, keep in mind the following fees:
DLD fee, which is 4% of the property value
Agent commission, around 2%
Property registration fees of AED 2,000 + VAT for properties of less than AED 500,000 and AED 4,000 + VAT for those over AED 500,000.
Yes, you can buy an apartment on a mortgage, with 20% down payment. The mortgage registration fee is 0.25% of the apartment value
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