Average ROI in Dubai Real Estate

With its breathtaking skyline and luxury lifestyle choices, Dubai has long been a magnet for real estate investment. For investors trying to maximize their returns, understanding the typical ROI in Dubai real estate is critical.

ROI, or Return on Investment, is a term used to calculate the profitability of a financial venture. In real estate, it is computed as the ratio of an investment’s net profit to the amount of capital invested. The return on investment for a Dubai property can vary depending on a number of factors, including location, property type, and market circumstances.

Dubai has seen a spike in real estate investments in recent years, thanks to its robust economy, rising population, and favorable government regulations. According to a Property Finder research, Dubai’s real estate market saw 27,642 transactions worth AED 63.8 billion in the first half of 2021, suggesting a strong comeback from the pandemic-induced slump.

So, what is the average return on investment in Dubai real estate? According to a study conducted by Bayut, a renowned real estate platform in the UAE, the average ROI in Dubai for residential properties ranges between 5-7% and 7-9%. These data are based on the rental yields of properties in various districts of Dubai.

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