Dubai Real Estate Outperforms Global Markets with Up to 11% Yields and Strong Long-Term Value

The Dubai property market continues to stand out globally, offering compelling returns and investment advantages that make it highly attractive—especially in comparison to many major world cities. Key takeaways are below.

Key Benefits for Investors

• High rental yields: Dubai offers average yields in the 6% to 8%
• No property tax and no capital gains tax.
• Freehold ownership in key zones.

Yield Performance by Location

Some of the more affordable areas in Dubai are delivering particularly strong yields:

• International City, Dubai Investment Park (DIP), and Discovery Gardens have posted gross rental yields between 9% and 11%.

These yields are significantly higher than what is typical in many mature global real estate markets.

Comparison with Global Cities

• In cities like London, New York, and Singapore, gross rental yields typically lie between 2% and 4%. By contrast, Dubai’s 6-8% average and up to 11% in some areas make it much more competitive.

Price Growth & Market Trends

• In key communities—especially the more budget-friendly ones—villa prices have surged by up to 11% over recent periods.
• Also in budget areas, double-digit rental yields have been observed.

Overall Market Outlook

• The UAE (including Dubai) real estate market has consistently outperformed many global benchmarks in the first half of 2025 across core sectors, despite tighter global conditions.
• However, demand for mid-market apartments in Dubai is showing signs of softening, while villa communities have remained more stable