Sale, Rental, Flipping, Offices: Opportunities for Real Estate Investors in Dubai

Dubai is one of the most promising real estate markets in the world, with high returns on speculative and rental strategies. In this article, let's take a look at what opportunities there are for investors here and tell you how Inside helps you make money in this market.

One of the most effective ways to make money from real estate is to buy a property in Dubai at the start of sales and sell it 1-3 years later when the building is ready.

Suitable for those who want to earn passively on capital growth and those who are willing to invest money for 1-3 years. We give a conservative forecast — from 10% per annum in dollars, but the percentage can be higher.

In 9 out of 10 cases, you cannot resell the apartment before you get the keys — this is the rule of most developers. If you have contributed, for example, only 20% of the price, the new buyer will not be able to simply “take” the object. To get the right to assignment, he must contribute at least 50% of the cost.

Developers set such conditions in order to exclude speculation in the early stages and sell housing on their own terms - with the usual installments.

The best investment is buying at the start of sales in neighborhoods that are still developing. The more the authorities have plans for the location, the higher the potential for price growth.

In Dubai, a promising neighborhood is Dubai Islands — an archipelago of artificial islands, where hotels and residential complexes are being built.

In Ras Al-Khaimah — Al Marjan Island, where by 2027 will open the first casino in the Middle East — it will increase the tourist flow and demand for real estate.

When buying, it is important to consider how reliable the developer is. Emaar, DAMAC, Aldar, Meraas, Ellington — well-known players in the UAE real estate market, which build quality and meet deadlines.

Apartments from reliable developers are easier to resell. Confidence in the liquidity of such objects is higher.

Some developers offer convenient schemes — for example, with small quarterly installments. Emaar often has 10/90 installments, where 10% is paid during construction and 90% is paid when keys are handed over. This means that the investor will need a hefty sum by the time of handover.

We also wrote about payment plans in our FAQ for property investors.

Our client bought an apartment in Luma 22, invested 50% of the price ($72,150) and received $46,300 from the sale. The yield is 64%. You can read the details here.

A client invested $101,280 in a one-bedroom apartment in Binghatti Corner — 60% of the apartment's value. The sale yielded $57,100 - 56.3% return.

We’ve bought two apartments in Dubai Hills Estate under construction for $309,000 and $295,000 for our client and sold them 10 months later for $360,000 and $340,000. They earned $57,000 — 34% annualized interest in dollars. The new owner plans to rent the apartments for $30,000 per year.

One of the locations in Dubai worth investing in is Dubai Islands. Very soon the developer Mr. Eight Development will be launching a new project here. We recommend taking a closer look at the complex, because:

Renting out real estate is one of the most reliable investment strategies in Dubai.

Suitable for investors who want to earn a stable passive income in currency. The average yield from renting an apartment in Dubai is 5-8% per annum in dollars. For comparison: in London is 4-6%.

Let's break it down with specific examples. Apartments by the beach in JBR overlooking Ain Dubai:

Finished apartment with furniture in Business Bay:

Why the rental business in Dubai is profitable:

There are two rental formats:

The most in demand are:

We found an apartment for $167,000 for an investor in Dubai Hills Estate and rented it out for $20,000 per year. The yield is 9% per annum in dollars.

The client bought an apartment for $205,000 in Jumeirah Village Circle (JVC), then we furnished the object and rented it out for short-term rent. Bottom line: 10-12% APR + resident visa.

We found a studio in DAMAC Hills for $205,000, furnished it for $5,500 and rented it out in just three days — the owner gets $1,300 passive income per month.

Flipping is a strategy where an investor buys a property, renovates it and resells it at a markup. In Dubai, this works well with both apartments and villas.

Suitable for investors who are ready to invest from $500,000 or use a collective investment mechanism to lower the entry threshold. 30-40% per annum — on average from a single flip. In rare cases, returns can be higher.

The old stock in Dubai is becoming obsolete morally faster than physically. Many apartments and villas that were built 10-15 years ago no longer meet current design trends. Therefore, investors buy out such objects, make repairs and sell at a higher price.

High demand for housing after renovation. Expats and investors are ready to overpay for real estate with a modern interior in order to move into the apartment immediately and not to think about repairs.

Do you want to earn money on flipping? We will find you promising properties with high growth potential. Just talk with us.

An investor bought an apartment for $762,000, invested $82,000 in renovations and resold it for $953,000 6 months later. The renovated interior has marble panels, Italian furniture and designer elements. The yield was 12.9% and $109,000 in dollars. The flipping case is not ours, we bought this apartment for our client after renovation.

But we did flipping a villa — the story of renovation of a house in Dubai Hills Estate and a mini-movie about it:

Investors make money on commercial real estate in different ways — renting, renovating and reselling. Or they buy at sales starts and resell at a higher price.

Suitable for investors who want to receive a stable passive income in currency, those who are ready to invest in renovation and earn on resale, and businessmen who want to buy an office for their company and save capital.

Why it is profitable? The office market is overheated in a good sense — occupancy rate in business districts (for example Business Bay) reaches 95-97%. Demand exceeds supply — in the first half of 2024, 24,000 new companies registered in Dubai that need offices.

In addition, the UAE continues to attract businesses from around the world and not enough new office buildings are being built. Rental prices are on the rise — office rates have risen by an average of 11% over the year.

What kind of yield you can get?

You bought an office for $354,000, invested $125,000 in renovation, rented it for $88,200 per year and resold it for $735,000. The investor made money on the lease and received $256,000 from the sale.

Our client bought an office in Omniyat Enara at Business Bay for $8.17 million. The projected rental value by 2027 is $794,000 per year.

There are other ways to make money in real estate. For example, we can find you a land plot in Dubai for sale for construction. We are also now actively developing warehouse real estate.

If you have any interesting suggestions or inquiries, be sure to contact us. We are open to communication with our clients and always act on the side of investors, calculate investments and do everything to make our investors earn more.