The Emirates has become a magnet for investors from all over the world. The UAE is home to 20 billionaires, 308 centimillionaires and 116,500 millionaires.
Megaprojects, high standard of living, favorable conditions for business attract investment novices and experienced market players to the country.
The article tells why the Emirates are becoming a center of investment, how to make money on off-plan properties in Dubai and get a stable income in USD.
Why the UAE Attract Investors
Favorable conditions for buying real estate
The authorities of the Arab Emirates create the most favorable conditions for investors in real estate. For example, the country has some of the most attractive mortgage terms in the world:
- low interest rate - 3-6% (depending on the bank),
- initial payment - 20%.
“With such conditions, even non-residents can buy an apartment on mortgage with minimal investment. And then rent it out to cover the payments at the expense of the tenant and receive additional income”, - In.ae co-founder Firuz.
For example, we have a property for sale that will bring in $18,000 a year from renting it out, but the monthly mortgage payment is only $1,100. So, you would pay off the mortgage and make $400 net income per month.
The advantages of buying an apartment in Dubai for rent:
1. High yield. Rental yield in Dubai is an average of 5-8% per annum in dollars - this is a high rate at low risk. At the same time, you do not pay tax on rental income.
2. Stable capital growth. In addition to rental income grows and your capital due to the increase in the value of real estate.
3. The ability to obtain a visa and come to Dubai without restrictions. If you buy a property from $205,000 you can apply for residency status.
Economic growth
In the first half of 2024 alone, the country's GDP increased by 3.6%.
There is a stereotype that the UAE economy depends only on oil. In fact, 75% of the country's GDP is generated by non-oil sectors. The fastest growing sectors in 2024 are transportation and logistics (+8.4%), finance and insurance (+7.6%), and construction (+7.3%).
According to the forecast of the Central Bank of the UAE, in 2025 the economy of the country will grow by another 6%. This will attract wealthy people to the country, investments and will affect the real estate sector.
Political stability and investment climate
The UAE attracts investors and entrepreneurs from all over the world due to its stable political environment, neutrality and favorable investment climate.
The country has no wealth or personal income taxes. This makes the Emirates especially popular with residents of the US, UK and other countries that are actively transferring capital to the region.
In comparison, Spain has announced the introduction of a tax of up to 100% on the value of real estate for non-residents from countries that are not part of the EU. This decision may significantly affect the global real estate market. Last year alone, foreigners purchased about 90,000 properties in Spain worth €22.5 billion. Many of these investors may soon choose Dubai.
Elon Musk has long been an admirer of the Emirates. He will open a $1 billion science university here. Recently, Elon noted that the UAE has become a leader in attracting wealthy people from around the world. At the end of 2024, there were 20 billionaires living here:
- 20 billionaires,
- 308 centimillionaires,
- 116,500 millionaires.
The number of millionaires increased by another 6,700 people in 2024.
The volume of foreign investment in real estate in the UAE capital Abu Dhabi for the first half of 2024 increased by 225% compared to the last half of the year.
This capital inflow is stimulating the growth of premium real estate. According to Knight Frank, the number of villas and apartments in Dubai costing more than $10 million decreased by 65.5%. Now there are only 460 such properties on the market.
Business conditions and free economic zones
There are 19,000 companies operating in Dubai. Their number grew by 17.6% in one year alone. All because the Emirates have created all the conditions for doing business.
For example, the UAE has free economic zones with privileges for entrepreneurs: no taxes, simplified registration procedures and other benefits.
According to the latest data, there are more than 40 free zones in the Emirates, and 28 of them are in Dubai. Here, for example, are the most popular ones:
The emirate of Ras Al Khaimah is home to the RAKEZ Free Economic Zone, where more than 18,000 companies operate. Those doing business here have access to business licenses, visa support, bank accounts and other services.
“Every year, more and more wealthy people and professionals from different countries are moving to the UAE. They are willing to pay a lot of money for rent. This means that the country's real estate market will continue to grow and investors will be able to capitalize on it,” In.ae co-founder Firuz.
High demand for housing due to the influx of students and professionals
As of early 2025, there are more than 65 higher education institutions in Dubai alone.
Recently it became known that the emirate's authorities allocated $1.2 billion for the construction of Dubai National University, which will enter the top universities of the world and make the city a leader in the quality of education. This will attract more students to the emirate and increase demand for real estate. All because students prefer to rent housing near the university.
In addition to students, specialists from different countries come to the UAE to attend world-class events: international business conferences, economic forums, and events. Many of them rent apartments for a while, and some stay to live and work in the Emirates.
Dubai and Abu Dhabi are among the top 10 cities in the world for remote work. Expats love the UAE for:
- high quality of life,
- the climate (it's warm all year round),
- affordable real estate.
Many of the newcomers get visas and rent apartments for a year at a time to live, work and study in the country.
“The UAE has a high standard of living, no income tax or luxury tax. One of the best healthcare systems operates here. These and other conditions attract wealthy people and real estate investors to the country,” In.ae co-founder Firuz.
UAE is a Global Center of Investment
The UAE is becoming a global center of investment attraction. The country has taken second place in the ranking in terms of money inflow: over the year, the volume of investments increased by 35% and reached $30.6 billion. The UAE attracts global investors and entrepreneurs because it does not participate in politics and puts the economy first.
Big companies have confidence in the UAE and are establishing branches here. For instance, the world’s largest asset management firm, BlackRock, recently announced the opening of an office in Abu Dhabi.
The country has a high standard of living and practically no crime: robberies, car thefts, attacks on people at night. In 2024, Abu Dhabi, the capital of the Arab Emirates, became the safest city in the world, according to the index of the Numbeo website. Three more UAE cities - Ajman, Ras Al Khaimah and Dubai - made the top 10 safest cities.
Dubai is also among the top five most visited cities in the world. The emirate invests billions of dollars in megaprojects that help its development: the artificial reef Dubai Reef, Al Maktoum Airport, the blue metro line, air cabs.
Due to this, 10.6 million tourists visited the emirate in the first six months of 2024 alone, and this number is increasing every year. This benefits those who are now investing in apartments, villas and apartments in Dubai.
“The UAE has a low entry threshold for investors, a high tourist flow, no real estate taxes, but a growing demand for rentals. The Arab Emirates is one of the leading countries in terms of profitability for landlords,” says In.ae co-founder Firuz.
Why Now
The UAE real estate market has recovered from the pandemic and is regularly setting new records. Bayut estimates that investment in Dubai real estate brings up to 11% returns per year, and these figures are rising along with rental rates.
Apartments in developing areas - on Saadiyat Island in Abu Dhabi or Al Marjan Island in Ras Al Khaimah - are rising in price particularly fast. In.ae experts have calculated that if you buy a liquid object in Ras Al Khaimah right now, then by 2028 it can be resold for 35-50% more expensive.
Tourist traffic in the UAE is also steadily growing, and with it, the demand for rental properties:
- Tourist traffic to Ras Al Khaimah increased by 8% in 2024, while real estate prices in the region are still on the upswing. Property values will rise 35-50% by 2028, when a casino will be built in the city. That is, now is the best time to invest.
- By 2030, tourist traffic in Dubai will reach 40 million tourists a year, which will increase the demand for rental housing and raise the cost of real estate. The earlier you start investing, the higher returns you will get on your exit from the investment.
“You can earn even more in the secondary market. There are properties cheaper than new launches. You can buy an apartment or villa, renovate it and sell it at a mark-up. This investment strategy is called 'flipping' and earns 20-30% per annum in dollars,” In.ae co-founder Firuz.
“You don't need a lot of money to invest in UAE real estate. To start, it is enough to buy property from $150,000 - enough to buy a studio or one-bedroom apartment in a good neighborhood. Then the apartment can be rented out and get 6-8% per annum in dollars and above, “- co-founder of In.ae Firuz.
Where to Buy Real Estate in the UAE
In the UAE there are three regions that attract the most investors:
- Abu Dhabi, the capital of the Arab Emirates,
- the UAE's most popular city, Dubai,
- the emerging emirate of Ras Al Khaimah.
Abu Dhabi
Excellent for investment with the purpose of renting out real estate. Particular attention should be paid to resort real estate on Saadiyat Island - here you can buy villas and apartments. Only in the last year, the rent of apartments on the islands of Saadiyat and Yas has grown strongly: by 30 and 17% respectively.
Dubai
Dubai is a place where you can make money on both resale and renting.
For resale, locations that are just starting to develop, such as Dubai Islands, are suitable. Or popular areas such as Dubai Hills, Dubai Marina and Business Bay. In these locations of stable high demand and good profitability, but you need to choose objects carefully.
Ras Al Khaimah
One of the most interesting investment centers of the UAE is Ras Al Khaimah. In 2023, the city received 1.2 million tourists, and in 2027 the first casino in the Middle East will open here. After the opening of the gaming resort emirate will change beyond recognition, the tourist flow will increase, real estate prices will fly up.
Large developers, world hotel chains, restaurants, entertainment venues, spas, beauty salons and other businesses have already entered Ras Al Khaimah. In 2-3 years, the city will turn into a place where the richest people in the world will come, so invest in it now.
Which Investment Scenarios Work in the UAE and What Kind of Returns They Yield
Investors who enter the UAE earn from different investment scenarios. Here are the most popular ones:
1. Resale. Buy an apartment during the construction phase and then sell it for 20-30% more expensive when the construction is over.
2. Renting. Take an apartment or villa in the mortgage, and then give it to the management or rent out independently. This scenario brings 6-8% per annum in dollars.
3. Collective investments. You can team up with 3-4 investors to invest money in the purchase of one object, and then resell it and get income. You can enter with a small amount of money, from $30,000. Here you can earn up to $15,000 in just a few months.
There are many scenarios: flipping, buying land, short-term rentals. Investors with capital from $1 million prefer to buy villas on the beach to vacation on them a couple of months a year, and the rest of the time to rent out.
Comparison of the Real Estate Market in Dubai with Other Major Cities
How much will you earn in a year if you invest $100,000 in real estate? We compared the average rental yield of a one-bedroom apartment in different cities around the world:
- New York - $4,800
- Singapore - $5,200
- Istanbul - $5,500
- London - $6,000
- Dubai - $6,200
Dubai wins because of high rental rates and low cost per square meter: the average price per square meter in London - $ 9,540, and in Dubai - $ 5,160. Therefore, your investment in Dubai will bring the maximum return in dollars.
Why Us
Some real estate agencies in Dubai only work with new projects from developers. We at In.ae know and love working with secondary properties.
The secondary real estate market is more complex, with a long transaction cycle that takes twice as long. Here you need to reach an agreement with both the seller and the buyer, and the commission is less.
Another advantage of In.ae is the database of ready apartments and houses, where there are rare objects from investors at a good price. We calculate the return on investment, analyze the location, compare prices and offer options that are difficult to find in the public domain.
“We never offer overpriced properties to get a high commission here and now. Our brokers choose properties that will be easy to sell or rent. Because we accompany the client at all stages, even after the transaction,” In.ae co-founder Firuz.
What goes into the full transaction cycle?
Let's say you want to buy a home, rent it out, or make money on resale. Leave a request for a consultation and we'll:
- find a property,
- prepare the documents,
- help you get a mortgage,
- solve the issue of opening a bank account,
- we'll handle the transaction,
- furnish the apartment,
- we'll tell you how to get a visa,
- connect the utilities,
- help you resell or rent your apartment.
We will give recommendations on real estate selection and protect you from fraudsters, and if you decide to sell the apartment - we will help you determine the real price so that you get the maximum benefit.
The In.ae Team Can Help with Any Issue
In.ae solves any client problem. Here are some of our cases:
1. We helped a woman who was persuaded by a dishonest broker to buy three apartments at once for a 100% resale profit. That kind of return is virtually impossible today. Figures that seem too good to be true should make you cautious. If you bought a property on the recommendation of a broker and can not sell it, write to us, we will help you.
2. We helped a lady who was blocked by a broker from another company and left with late fees and penalties. We negotiated with the developer to reduce fines and minimize losses. This was able to be accomplished. The client withdrew from the project, so we were able to sell the apartment and refund her money.
3. We were approached to help open a bank account in the UAE. Our clients did not have residency and income in the UAE. We requested the necessary documents, translated them into Arabic and sent them to a friendly bank. As a result, the account was opened much faster and cheaper than expected.
We know the intricacies of any legal processes in real estate and help even with personal issues. For example, we once got a client's child into school.
Our team consists of 50 people, we speak 12 languages, we work all over the world and solve problems of investors from different countries. We cooperate with individuals and legal entities. We select apartments for living, land plots and commercial real estate, support the developer in entering the UAE market, manage facilities in the UAE, and provide assistance in the development of new properties.
We have established strong relationships with leading UAE real estate developers to secure units and terms that are not available to everyone. We are used to developing investment scenarios for each client. We work long term, we love what we do, we love the Emirates.
