Ahead of the Curve: 3 Tips For the Most Profitable Real Estate Investment in Dubai

Tips For the Most Profitable Real Estate Investment in Dubai

Tips For the Most Profitable Real Estate Investment in Dubai

Want to try the most profitable investment option? Discover why Dubai is the best variant in this niche and where an investor should start.

Real Estate as the Best Current Investment Option

Searching for a real estate property investment opportunity? As Reuters poll of analysts states, in 2021 the house prices in Dubai will rise for the first time during the last six years. That creates a reason to buy property in Dubai with a prospect of selling it further. If you are a novice property investor, learn how to invest in today’s ever-evolving market.

Profitability of Real Estate in Dubai

Here are the top reasons why Dubai is a thriving and lucrative housing market:

  • Dubai is an international hub for trade, businesses, and tourism. As more and more people gravitate towards the city, housing trends continue to grow.
  • Dubai is a safe city as its crime rate is very low according to Interpol. Moreover, Dubai’s health infrastructure is well-developed. As a result, most retirees in Dubai choose to buy an investment property rather than rent it.
  • Dubai is becoming increasingly diverse to ensure all cultures feel welcome. It attracts foreigners from various communities.
  • The UAE’s government has introduced a remote work visa. The purchase of property in Dubai helps to obtain a residence permit there quickly.

At the moment, Dubai’s residential property market is growing steadily. An in-depth study conducted by Reuters in August 2021 has revealed that 9 out of 11 analysts expected the acceleration of the housing market in Dubai next year.

Having evaluated house affordability, analysts came up with a median of 4 out of 10 on Reuter’s scale and rated Dubai housing within the cheap bracket. In addition to this, 9 out of 11 analysts believe the affordability would either increase or remain the same within the following 2-3 years.

Tips For the Most Profitable Real Estate Investment in Dubai

What Are the Best Opportunities?

Dubai provides the following investment options:

  • commercial spaces
  • hotels
  • residential properties
  • golf clubs
  • resorts (incl. with SPA areas)
  • service offices.

The most popular Dubai’s districts for real property investment are Jumeirah Village Circle, Dubai Marina, and Business Bay.

Tips for Novice Investors

Tips For the Most Profitable Real Estate Investment in Dubai

In the UAE’s volatile property industry, changes can be unexpected and dramatic. Here we offer the three best tips for your investment.

Understand the Dynamics of Where You Are Investing

When investing in property in Dubai, you should learn more about today’s real estate trends in Dubai’s real property, historical investment data evidence, and future outlooks.

Dubai is an ideal city for new investors to test their strategies. This is due to the low cost of housing and real estate, as well as an incredibly high rental yield. In addition to this, Dubai is famous for the low real estate investments tax rate.

Choose the Best Place and Time to Buy

The perfect time for investment is when banks offer lower mortgage interest rates and the market demonstrates an oversupply. This way buyers can negotiate on property prices.

You should never compromise on location either. Focus on purchasing investment property in an area with high demand, high rent, and plenty of amenities.

Build a Network

In most cases, the best market deals are a result of collaboration with industry experts. To communicate with them one way forward would be to visit seminars dedicated to property investments. You can get to know about them via social media and property web portals. You should adopt modern technologies to learn new things from experienced investors.

Work With the Right People

Employing the right people is always crucial. Here are the desired members of your effective team:

  • Real estate agent — the head of your team and the coordinator of property sale and purchase.
  • Insurance agent. Insurance claims regulation is the area of his responsibility.
  • A property inspector examines the property for damages, water and gas quality, as well as other risk factors.
  • Real estate attorney. Agreements and other legal documents play a key role, and real estate attorneys prepare them and assist with forming business entities.
  • Real estate appraiser. This person defines the fair investment property value.
  • Accountant. First, they help to choose the appropriate legal entity. Second, they calculate the taxes and do the reporting.
  • Real estate investment mentor — an investor with significant experience to guide and help novice investors.
  • Real estate investment partners. Their skills can be helpful in terms of finances and other complementary activities.

Each above-mentioned team member is competent in specific spheres. That is why all of them play a vital role in a successful investment.

Tips For the Most Profitable Real Estate Investment in Dubai

Think of Your Finances in Advance

To invest successfully according to the country’s regulations, you should organize your finances beforehand. Determination of how much you can borrow, pay, and afford helps you narrow down the range of investment properties that suit your portfolio needs.

If you are a novice investor, you have to cover the first six months of mortgage payments. This is the period that might take you to find the right tenant.

Connect With the Right Agent

Conduct in-depth research to find a real estate agent whom you can trust. In case you have any difficulties you should apply to the Real Estate Regulatory Authority (RERA). With a reliable agent in your corner, you can get plenty of insight to make better decisions.

Moreover, once you have locked down a property, an estate agent with a good reputation offers extensive project details and assists with the buying process.

Prices for Property in Dubai and Abu Dhabi

The volatile market of the UAE is finally set to recover after many months of hardships. Here is a closer look at housing trends across the top cities in the Emirates.


May 2021 was marked by a decline of the total Residential Property Price Index (RPPI) in Dubai by2.1%. That was the biggest fall in RPPI prices since September 2017. In particular, the apartment prices had decreased by 3.8%, whereas villas had become 10.3% more expensive.

Abu Dhabi

Abu Dhabi has made a recovery in the real estate market sector. By May 2021, its RPPI had risen by 1.5%. The sales prices for villas and apartments showed an increase of 5.5% and 0.6% respectively.


Dubai attracts millions of people from all over the world with its highly developed infrastructure and business opportunities. In the near future, real estate prices are expected to rise. These are good reasons to invest in Dubai’s real estate.

The success of investment in Dubai’s property market largely depends on how you understand the market. Make sure you conduct proper research and use expert recommendations. By visiting Metropolitan Premium Properties, you will find the perfect object in Dubai for your investments.


Join The Discussion

Compare listings