Important Facts on Investment Property in Dubai: Major Doubts Clarified!

These are the major reasons that investment in Dubai property is fetching good returns and is still growing. No other reasons are as directly responsible for the growth as these 5 are. People are relocating to Dubai for these reasons. 

1. Luxury with Security: Dubai has a robust reputation for security and luxury across the world. You will see policemen riding the latest sports cars to ensure law and order across the emirate.
2. Geographical Advantage: The advantageous geographical placement of Dubai on the globe allows it to attract market opportunities from both the East and the West.
3. Relaxed Taxation Allures Corporates & Investors: The tax-free environment feels highly relaxing, where there is no income tax (including taxes on rental incomes), no capital gains tax (you keep your property sales profits in your pocket), and no annual property tax. The tax-friendly business profile with total transparency is also helping in pulling people here.
4. The Corporate Setup Pulls the Executives Here: Major companies, with global reputations, are setting up their regional headquarters (or hubs) in Dubai. The heavyweight mentions include Microsoft, Apple, HSBC, Oracle, JPMorgan Chase & Co., etc. It explains why thousands of executives and professionals are relocating to Dubai. 
5. Dubai is Cheaper than Other Global Megacities: Dubai is still less costly than other megacities in the world known for property investments. 

No, Dubai is still the Gold Mine that property investors can handsomely profit from for years to come. The Gold Rush in property investment goes on!

There is a wrong speculation or myth circulating in the market that the Golden Phase of Dubai property investment has gone kaput! Wrong, Wrong, Wrong! 

The reasons are already given through 5 major reasons we mentioned just now in this blog. Let us explain it clearly again. 

Vancouver, New York, London, Los Angeles, and Singapore are globally renowned top real estate markets with entry price points comparatively more expensive than in Dubai (still today in 2025). Let us take the example of London here. 

• In Dubai property investment approximately costs you $680 USD per square foot. In London, it starts from $1162 USD per square foot.
• A single person living in a 1-BR Apartment in London would need to spend around AED 10,290 for rent, whereas in Dubai it would be around 7,927 in a central location. Evidently, the cost of living in London is also more expensive than in Dubai.
• Now, you must be thinking that London will fetch you a higher rental yield then, as it charges a higher rental price. NO! In London, the rental yield is typically around 4%, and in Dubai, it ranges from 5% to 9%. 

Do you not trust us or anyone? Fine. Go to the DLD Website and check the figures and track the growth that is being recorded officially there. The real estate market of Dubai is absolutely transparent, and you can know everything. 

Many of our clients and even friends ask us if the new real estate developers are trustworthy. The answer is YES, they are reliable. 

Not everyone gets the scope to manage a real estate transaction with the Emaar, Nakheel, DAMAC, and Sobha Realty kind of top real estate developers who are already established. Dubai Holding-backed projects are also limited. 

A lot of new real estate developers are offering stunning projects, and whether they are to be trusted or not is a major concern with many. These 3 points are enough for you to know the answer by yourself:

DLD and its RERA are there, so no funny business

Dubai Land Department (DLD) has a regulatory branch called the Real Estate Regulatory Agency (RERA) that monitors and oversees all the real estate dealings and activities happening in Dubai. Each and every Dubai real estate agency and developer has to abide by their regulatory laws and needs to follow transparency and honest approaches. 

Every real estate developer first needs to have enough money before starting the project.

Not just anyone can claim to be a real estate developer anymore now in Dubai. They need to show a certain (fixed by the Government) amount of capital in their bank account. Every real estate developer has to purchase 100% of the land for construction (where they intend to start their project) and pay at least 30% of the project construction cost into the escrow account in advance. 

ESCROW Account is All the Assurance You Need

You wish to capitalize on new and smart properties at good locations, so it has to be off-plan, we assume. Best property for investment in Dubai in 2025 is mostly off-plan units. Now, your off-plan property payments go to the Escrow Account.

An ESCROW Account is created whereby a third party stays in charge of the money and releases it to the developer or seller only when both parties (the buyer and the developer/seller) fulfill the legal and financial obligations righteously. The Dubai government appoints an Escrow Account Manager at the Bank (where it is deposited) as the third party who manages the escrow account. 

As and when you deposit the installments into the Escrow account, it is withheld by the manager until the predecided project milestone is fulfilled by the real estate developer as detailed in the SPA (Sales Purchase Agreement). With the final handover, the real estate developer is allowed to withdraw all the money eventually. 

Honestly speaking, it is very difficult to make a correct assessment of the locations or projects that can be described as the ‘top’ or ‘best’ in the real estate market performance scenario. 

The Dubai real estate market is dynamic, with situations changing constantly! What we are suggesting today might not be available in 3 weeks’ time for immediate purchase. 

Even we sometimes get surprised at how newer projects are popping up, how quickly the projects get sold out, and when newer development plans are being passed by the Government. 

We can pinpoint a few areas/projects, but you need to work with a certified real estate agent, the importance of which we have discussed multiple times in detail in our previous blogs. 

Palm Jebel Ali (Palm Jumeirah 2.0)— If you have missed out on the iconic Palm Jumeirah, there is nothing to worry about. Palm Jebel Ali is larger and more luxurious than Palm Jumeirah, as per popular perception. You have 3 entries and exits into the island. The water circulation points from the sea into the island also have more outlets than in the original Palm Jumeirah development. 

Palm Jebel Ali’s unique coastal living also has a major advantage where residents will have private beach access from the villas on both sides of the crescent (unlike Palm Jumeirah). Also, world-renowned architects are building the villas on the fronds with better builds and the latest design quality, using smarter technology. 

Another reason to love Palm Jebel Ali is that it is more affordable than Palm Jumeirah. A 15-20 year old villa on a private beach in Palm Jumeirah might cost you a minimum of AED 30 million, whereas you get a villa directly on the beach in Palm Jebel Ali at around AED 20 million with a 4-year flexible payment plan. 

Dubai Maritime City—The area/community marks Dubai’s last real coastal frontier to buy a beachfront property. It is 15 minutes away from Downtown Dubai and DIFC where most of the dubai people go for work. It will be on the Dubai Metro Red Line, so metro connectivity joining the area with the central Dubai locations is a major plus point here. 

The Beyond by Omniyat developer is an ultra-luxury real estate developer and known for their branded residences. The limited beachfront availability is escalating the demand here, so grabbing a unit now and rolling in money in the future is more than just a possibility here. 

Projects here might be available to you at just AED 2,760 per square foot, and the capital appreciation for seafront units records massive figures. The price is lower than any other established waterfront communities in Dubai. 

Rashid Yachts and Marina—Next to the Dubai Maritime City lies Emaar’s Rashid Yacht and Marina. It is a low-rise community that mimics the vibe of Dubai Marina, where high-end restaurants and shops make it a popular hangout and lifestyle destination managed by Emaar. Imagine getting the hot-n-happening premium retail therapy of Downtown Dubai by the sea here in this community. And a cool hangout zone with a good collection of residences and lifestyle amenities inside secured gated communities brings opportunities for investors to capitalize on. Simple. 

The brand Emaar is ranked amongst the most renowned real estate brands worldwide. Their projects, especially waterfront units, always fetch handsome profits. The area is more competitively priced than Emaar’s Downtown Dubai and Nakheel’s Palm Jebel Ali. Rashid Yachts and Marina is a preferred base for holiday homes and short-term rentals. 

Dubai South—Dubai South with EXPO City and Emaar South and the upcoming DWC Airport is already a major hit. EXPO City has the confidence of the Government. It is being built by the Dubai government, and the infrastructure has already claimed 20+ Billion expenses. 

The EXPO City has multiple sources of investment scopes with its regular events and exhibitions. The Fortune 500 companies are already operating in this location. 

And, the world’s biggest airport as your neighbor will bring the largest possible traffic (business leads). The investment potential of the area cannot have a dull period, as it favors capital appreciation through long-term rental and short-term rental hikes alike. 

Dubai Creek Harbour—The ‘New Downtown Dubai’ can be your chosen area/community for buying investment property in Dubai! Emaar is the master developer, so investment scopes cannot be missing here. The view and vibes are iconic of the Dubai Skyline though it keeps you here protectively safe from the chaos of the city hustle and bustle. 

The centralized master community by Emaar takes care of your entire lifestyle desires and needs. A 1-bedroom apartment here will cost you less than AED 8K, and that is pretty cool! The traditional boat sailing on the Creek Harbour waterways, the proximity to the Ras Al Khor Sanctuary and the view of the Downtown Dubai Skyline together make it a good place for tourists too. So, both the long-term rental returns and short-term gains are good here. 

Don’t worry about the seamless connection, as the area stays connected with the city through roads and boats perfectly. The upcoming metro station nearby will enhance the investment potential further, which is already projected to be high, as it is a prime location waterfront project by Emaar.. 

Dubai Hills Estate—The area or community needs no special emphasis, as it has been and will always be one of the best areas for property investment in Dubai 2025 and beyond. Check out the property portal sites, the DLD Website or even our community page on Dubai Hills Estate; you can always check for what makes it a good choice. 

It is one of Emaar’s best that consistently makes the investors happy. This is not a waterfront destination, but it comes with an award-winning 18-hole Championship Golf Course. Beachfront communities and communities with golf courses in Dubai can never make you incur losses. Get it fixed in your head. At the worst scenario, you may have to resell it at your purchase dprice, but never below that! 

The central location in the Mohammed Bin Rashid City makes the residents here only 15-20 minutes away from almost all the major destinations in Dubai. There are several schools around the community. The demand for Dubai Hills Estate rental properties is extremely high. 

Sobha Hartland 2—The green master-planned community by Sobha Realty is described as a waterfront community even though it doesn’t stand along the shoreline. The 3 gorgeous swimmable lagoons earn it the waterfront status. The Palace Makers (Sobha Realty is popular with this nickname) are known for their high-quality designs, superior construction standards, timely delivery of the projects, and strong brand reputation. 

The green community is inside the Mohammed Bin Rashid City, which is a prestigious location with accessibility to all social amenities and major areas of Dubai. It is just 10 minutes from Dubai Mall, and the community will have its own shopping mall, by the way!

All areas and/or communities will sound like perfect destinations for property investment. But not all can do full justice to every penny you invest. 

Shake off the dilemma and follow this one insightful strategy— Follow the Master 2040 Plan! Yes, we suggest it, and we have reasons for it. If the project/community/area is in alliance with the visions of His Highness Sheikh Mohammed Bin Al Maktoum, money will automatically follow the investments there. 

Communities/areas/projects built attuned to the Dubai 2040 Master Plan will have the best infrastructure, enjoy full support of the Government, feature a futuristic smart master plan, and it is a surefire way to multiply capital and earn success. 

You can go through our previous blog on Dubai Master Plan 2040 where we explained in detail all the features and results of the vision set by His Highness. 

Follow the Dubai 2040 Master Plan. Your ticket to property investment success! 

Time to Wrap Up!

The facts that we shared here on investment property in Dubai come backed with our experience as a time-tested RERA real estate agency in Dubai. You can check our community pages and other blogs for further details on the areas/communities we mentioned. Here, we pinpointed only the facts that are driving the gains. 

Do not get confused, because there isn’t anything to feel puzzled about in Dubai real estate, at least. It is the most transparent real estate market you will see in the world. By the end of this blog, your major doubts should be clear, or you can talk to us. We are always available!