Why Renting Out Property in Dubai Is Profitable

TOP 7 Reasons to Rent Out an Apartment in Dubai

1️. Growing Rental Rates

During 2023–2024, apartment asking rents have increased by 15.4%, reaching an average annual rent of $24,800. The highest increase was recorded for 1-bedroom apartments – 18.5%. 

2️. Growing Demand

Almost 3 million people or 77% of Dubai's population prefer to rent property. The emirate's population grows every year. In January – September 2024, population increased by 130,000 people.

3️. High Rental Yield

Dubai's average annual gross rental yield is 8%. For comparison:

• New York – 5.3%  
• Moscow – 3.7%  
• London – 3.6%  

4️. Stability

80% of tenants prefer long-term rent (5–15 years). Payments are typically made in advance for the entire year, providing landlords with a significant sum.

5️. Return on Investment

In Dubai, the average investment payback period for rental properties is 9 years. For comparison:

• New York – 17 years  
• London – 24 years  
• Moscow – 27 years  

6️. Tax Benefits

Rental income in Dubai is tax-free. In contrast, taxes on rental income in London can reach up to 45%.

7️. Stable Currency

The UAE dirham (AED) is pegged to the US dollar, offering income stability and protection from currency risks.

TOP 3 Areas for Apartment Rentals in Q3 2024

– Mid-tier Segment

1️. JVC  

2️. Bur Dubai  

3. Dubai Silicon Oasis  

– Luxury

1️. Dubai Marina  

2️. Business Bay  

3️. Downtown Dubai  

Launches with High Rental ROI

• One by Binghatti
• Jade Tower
• Sportz by Danube