Buying property in Dubai: The 2024 guide for investors

Sky-high yields. Zero federal or Emirate-level income taxes. Dubai dazzles with its glittering skyscrapers, palm-shaped islands, and reputation for unapologetic luxury. Yet behind the glamour lies a major driver propping up this desert-defying boomtown.

Property investors. They’re flocking here because Dubai delivers outrageously strong rental yields and sweet, sweet tax breaks. Couple this with a constantly increasing population, its tourist hotspot stats, and consistently famous development opportunities; this place has it all – now and in the foreseeable future.

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Are you intrigued to get your slice of this landlord’s paradise?

You’ve come to the right oasis. In this guide, we’ll quench your curiosity by covering:

Key areas and developments to target
Average rental returns across property types
Steps foreign buyers must complete

Plus, insider tips will help you scout out promising prospects. Let’s uncover why Dubai is a magnet for global property players – and how you can craft a lucrative buying strategy in this Arabian hotspot.

Let’s dive in.

Buying property in Dubai with GuestReady

1. What are the requirements to buy a property in Dubai?

As of Janurary 2024, buying property in Dubai is a pretty simple process, much like purchasing real estate in most Western parts of the world.

There are no age restrictions whatsoever, and if you’re a resident (considered someone who lives in the UEA), you can simply make an offer and acquire ownership by successfully navigating the sales process.

If you’re a foreigner (someone who doesn’t live in the UEA), you’re able to acquire freehold ownership without restrictions either, whether that’s a freehold property contract, off-plan properties (construction yet to be completed), usufruct rights, or a leasehold up to 99 years.

No visa is required.

That said, you may only purchase a new title deed for freehold properties if they’re within the designated land plots, as outlined in pages 129 – 132 of the Emirate of Dubai (a document known as Article 3 of Regulation No. 3 of 2006 Determining Areas of Ownership by Non-Nationals of Real Property – but you won’t need to memorize that).

The areas for owning property include:

Western Dubai: Dubai Marina, Palm Jumeirah, Al Barsha South 2, Al Barsha South 3
Eastern Dubai: Mirdif, Ras al Khor, Al-Qouz Industrial Area 2, Al-Qouz Industrial Area 3
Central Dubai: Sheikh Zayed Road, Al Jaddaf, Umm Hurair 2, Al Rowyah, Emirates Hills 1, Emirates Hills 2, Emirates Hills 3
Southern Dubai: Jebel Ali, Palm Jebel Ali, Sofouh 1, Sofouh 2, The World Islands, Al-Qouz 3, Warsan 1, Nad al-Sheba

2. How much tax do I pay when buying a property in Dubai?

By far, one of the greatest benefits of buying property in Dubai is the fact that you don’t need to pay tax on it in the traditional sense.

Quite simply, there’s no income tax or inheritance tax payable on property in Dubai, although foreign investors may be subject to income tax from their country of residence if they don’t actually live in Dubai.

However, and here’s the important bit: there is a 4% transfer fee payable to the Dubai Land Department when a property is transferred to them. In addition to this, a ‘housing fee’ is payable monthly, equivalent to 5% of the average rental value of the area.

But this still means big profits for any investors looking to snatch up available property opportunities in the area.

For comparison, here’s what you’ll pay in taxes in various other countries based on a $700,000 property (figures depend on the state, region of the property and property value):

UK: £18,700, including up to 12% stamp duty and up to 28% capital gains tax as an investor (depending on income and whether you’re a first-time buyer), as well as legal fees, inspection fees, and survey costs (average £5,000).
USA: $31,500, including up to 2% of property value in transfer fees, plus title insurance, attorney fees, and appraisal fees, with an average of up to 5%.
Australia: $29,000, including stamp duty typically up to 5.5% of the property value, as well as legal, application, and inspection fees
Japan: $35,000, including tax up to 3% of property assessed value, plus 2% license tax, as well as estate agent fees and city planning tax, up to 3%.
Dubai: $28,000 – and then that’s all you need to pay.

As you can see, as a result of the low taxation, buying property in Dubai is a very attractive option for foreign investors. Combined with the good rental returns, there’s a potential to make a great income from Dubai property ownership.

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3. How to find a property in Dubai?

Several websites are great for finding investment properties in Dubai, including but not limited to;

You can also contact Dubai real estate agents directly in order for them to connect with appropriate investment properties.

At GuestReay we’ll work alongside you to find the best Dubai properties in suitable areas, while also considering your investment finances, guiding you through the property buying process, assessing the rental yield of the area and property, and other crucial figures, like rental demand in that area – all to make sure you get the best return on investment possible.

Related topic: Dubai golden visa requirements

4. Where to buy property in Dubai?

When buying property in Dubai, new investors are often spoiled for choice, given the sheer variety of world-class developments on offer.

But where is best for you?

Well, that depends on several factors, including budget, lifestyle appeal, and income potential, but to help create an overview, here are some of the best spots in Dubai that deserve your attention.

– Palm Jumeirah

A sidewalk facing the Palm Jumeirah region

The Palm Jumeirah, built between 2001 and 2006, is a series of man-made islands in the Persian Gulf. With a mixture of commercial and residential units, the area is popular amongst investors and tourists. The average sale price of an apartment on the Palm Jumeirah is 3.4 million AED, or approximately $926,000 USD or £789,000, making it the most expensive region in Dubai.

The average sale price of a garden home is 18.5 million AED, which is $5 million USD or £4.3 million. The average gross rental yield for an apartment is 5.33% for apartments and 3.39% for garden homes. The touristic nature of the Palm Jumeirah makes it a fantastic place to invest in short-term rental opportunities.