How does investing in real estate Dubai work? Location, returns and tax issues explained

Why Investing In Dubai Is Relevant Now

Short Market figures (demand, tourism, infrastructure)

Investing in real estate Dubai is relevant because demand, rents and infrastructure projects are strong, while the tax regime remains attractive. For investors, this means realistic rental income, good lettability and multiple exit routes. This overview gives you concrete yield ranges, costs, escrow and tax points, plus a contextualised shortlist to suit different strategies.

Summarised in 60 words: Dubai combines population growth, tourism records and large-scale infrastructure with a pro-investment climate. The rental market is tight in hotspots, supporting occupancy rates. New metro lines, roads and mixed-use districts increase accessibility and residential quality. Together, this makes property buying Dubai a logical diversification, provided you do selection and due diligence keenly.

• Demand: migration of professionals and expats is driving the leasing market, especially in well-connected neighbourhoods such as Dubai Marina, Downtown and Dubai Hills.
• Tourism: high visitation rates drive short-stay demand in waterfront and city-core zones.
• Infrastructure: ongoing metro expansion, new highways and masterplans increase long-term value.

For those looking to quickly zoom in on how real estate in Dubai works and the current off-plan stock, see our overview of off-plan projects in Dubai.

Macrodrivers (visas and regulation)

Dubai facilitates capital and talent with flexible visas and clear ownership. Freehold is possible for foreign buyers in many zones, with registration with the Dubai Land Department. Escrow obligation and project permits protect off-plan buyers. Together, this reduces operational risk and makes an investment Dubai more predictable.

• Visas: Golden Visa for buyers above a certain threshold and various residency options for professionals.
• Regulation: RERA oversight, escrow accounts and construction milestones reduce completion risk.
• Transparency: standardised purchase contracts, DLD registration and digital processes speed up transactions.

If you want guidance with Dutch-Dubai context and rules, start with our page Dutch broker in Dubai.

What Property Types Exist (Off-Plan Vs Resale)

Off-Plan: Benefits, risks and typical payment plans

In 50 words, investing in Dubai offers access to new locations and layouts with deferred payment. You buy on drawing, often with 10 to 20 per cent deposit and construction instalments. Potential upside is appreciation in value towards completion. The core risk remains delay or deviation from specifications, which is why escrow and developer track record are crucial.

• Advantages investing in Dubai: early entry prices, modern amenities, choice of unit types and flexible payment plans.
• Risks: time delays, spec nuances, market fluctuations during construction.
• Typical schedules: 10-20 per cent at reservation/SPA, 50-60 per cent during construction in milestones, 20-30 per cent at handover.

Need an explanation in off-plan Dubai, including escrow structure and selection criteria? Check out our explanation on off-plan real estate in Dubai.

Resale: advantages and liquidity

Summary: Resale offers instant rentals and better predictability for investing in Dubai. You see the building, service charges and current rental demand in the district. Liquidity depends on location, unit size and pricing. In established neighbourhoods, it is usually easier to rent or sell quickly.

• Advantages: immediate use and cash flow, less development risk, transparent comparison pricing.
• Liquidity: higher in prime zones with proven demand, lower in peripheral or overly specific products.
• Costs: NOC fees and possible refurbishment for optimal rental presentation.

Which choice suits your purpose?

Short answer: Off-plan suits investors who want payment diversification and seek value growth, resale suits those who prefer immediate returns and security. Your horizon, risk appetite and funding determine the best route. Our role is to translate your goals into a selection with clear trade-offs.

• Horizon 3-7 years and more risk-averse: off-plan with strong developer and prime location.
• Horizon 0-3 years and low risk: resale in neighbourhoods with stable demand and proven rental dates.
• Hybrid: semi-off-plan with nearby delivery for limited construction risks.

Realistic Returns And Example Scenarios

Net rental income - conservative ranges

Conservative estimation helps you avoid disappointment. Based on market data, we typically see net rents in these ranges, including service charges and basic marketing but excluding financing costs. This provides a realistic first test for your return property Dubai.

• Prime waterfront or Downtown: about 4.5 to 6.0 per cent net.
• Quality mid-market in strong residential zones: around 5.5 to 7.0 per cent net.
• Value zones with higher risk or lower liquidity: around 6.5 to 8.0 per cent net.

Your outcome will depend on purchase price, service costs per sq m, vacancy, furnishing and marketing choice (short- or long-term rental). Calculate your scenario with our tool for rent calculation.

Value growth scenarios with assumptions

Short answer: Value growth is cyclical and location-driven. For conservative planning, we use 0 to 3 per cent real per year in mature neighbourhoods, and 3 to 6 per cent per year in strong development zones with new infrastructure. Project selection and timing of entry affect this range.

• Mature districts with low land allocation: gradual price rise due to scarcity and amenity upgrades.
• Development zones: more variety through supply waves; upside on timely completion and emerging metro or retail hubs.
• Risks: macro volatility, interest rates, EUR-AED exchange rate and project-specific factors.

Use our Calculate ROI page to see value growth, rent and costs in one model.

Sample calculation (Purchase → Net Yield)

In 60 words: Suppose you buy a flat for AED 2,000,000. DLD 4 per cent, agency 2 per cent, Oqood or trustee-fees and furniture bring total cost to about AED 2,140,000. Annual rent AED 150,000, service charges AED 20,000 and other costs AED 10,000. Net rent AED 120,000. Net yield: 120,000 / 2,140,000 is about 5.6 per cent.

1. Purchase price: AED 2,000,000
2. Purchase cost: AED 140,000 (indicative)
3. Annual gross rent: AED 150,000
4. Cost per year: AED 30,000
5. Net rent: AED 120,000
6. Net yield: around 5.6 per cent

Please note: amounts are illustrative. We review actual service charges, rental comps and delivery quality on a project-by-project basis.

Fees, Deposit And Payment Schedules (Escrow Explanation)

Standard cost items

A clear cost estimate prevents surprises. The items below are common in real estate buying Dubai. Nuances apply per project, which we specify in advance.

• DLD transfer fee: 4 per cent of the purchase price.
• Registration/trustee fees: fixed amounts per bandwidth.
• Agency fee: often 1 to 2 per cent.
• Oqood fee (off-plan registration): fixed fee per unit.
• NOC fee (resale): variable per developer.
• Service charges: annually per sq m, depending on facilities.
• Furnishing, Dewa/Chiller connections, insurance and property management.

Escrow and what it covers

Escrow is the secure account framework that releases payments to the developer based on construction milestones. Its purpose is to protect off-plan buyers and link cash flow to progress. The RERA oversees escrow, permits and project milestones, reducing your construction risk.

• Funds remain separate from developer operation.
• Payouts only on certified progress.
• Transparency through project registration and contract documents.

How much equity do you need?

Short answer: With off-plan, count on 10 to 20 per cent at start and then construction installments. With resale, you pay the purchase price plus about 7 to 8 per cent fees at once. With financing, cash requirements vary by bank and status. We are happy to calculate scenarios based on your target return.

• Off-plan: initial payment 10-20 per cent, then 40-60 per cent during construction, rest on handover.
• Resale: full purchase price on transfer, plus fees.
• Buffer: 2-3 per cent of the purchase price for furniture and contingencies.

Tax And Fiscal Matters For Dutch/Belgian Investors

Dutch tax treatment (box 3 / box 1)

To summarise: In Dubai, there is no annual property tax and no local capital gains tax on sale. In the Netherlands, an investment property generally falls into box 3 unless there is more than normal asset management. The exact box classification depends on your activities, financing and possible rental strategy.

• Box 3: capital gains tax on your basis savings and investments.
• Box 1: In labour element or project development, levy can shift.
• Mortgage interest: not comparable to own home; specific rules apply per situation.

Read more about Dubai property tax With NL practical points of interest.

Double taxation & practical tax return steps

Short answer: You do not pay periodic property tax in Dubai, but you must correctly declare your property in the Netherlands or Belgium. Treaties and unilateral arrangements prevent double taxation. A correct valuation, exchange rate and record of expenses/income will speed up your declaration.

• Document purchase, costs, service charges and rental income.
• Keep DLD registration and escrow or SPA documents.
• Follow the tax valuation methodology applicable in your country.

Advice: when to hire a tax specialist

Engage a tax expert in case of financing, multiple properties, short-stay rentals or corporate structures. Advice is also valuable when it comes to emigration or Golden Visa planning. We share relevant files and rental data so that your advisor can work efficiently.

How We Curate Projects

Our criteria and why they are important

We filter the market on fundamentals that most influence risk and return. This keeps your shortlist clear and substantiated. Each project we propose meets at least four of the criteria below, and we explain why in each case.

• Location fundamentals: proximity to metro, employment hubs and amenities.
• Developer track record: delivery discipline, build quality, aftercare.
• Payment plan logic: cash flow matching your target and risk profile.
• Rental and exit logic: target group, occupancy, liquidity in resale.
• Service charges: level versus facilities and target yield.
• Master plan impulse: infrastructure and retail/park development on track.

Trade-offs: returns vs security

Short answer: Higher yields often go with peripheral locations or higher service charges per sq m, while prime locations offer security but lower net yields. We quantify the trade-off and draw out scenarios so you choose deliberately.

• Prime security: lower volatility, slightly lower net yield.
• Value strategy: higher cash-on-cash, more selection and exit discipline required.
• New area: potential for growth, but dependent on infrastructure realisation.

What deliverables House of Orange offers

You get a curated shortlist with data sheets, rental comps, service charge ranges and payment plan summaries. We guide SPA, registration, snagging and handover, and connect you to rental and management partners with clear service levels.

• Project memos and side-by-side comparisons.
• Rental and exit scenarios including sensitivities.
• Process support from booking to key transfer.

Get to know our team and way of working via About us.

Due Diligence Checklist: What to watch out for

Developer & title checks

In 50 words: Check developer licensing, previous completions, escrow registration and title status. Ask for project registration and confirmation of permissions. In resale review Title Deed, NOC process and any mortgages or service charge-arrears. This reduces legal and operational surprises and supports a smooth handover.

• Escrow and RERA registrations, project permits and milestone status.
• Track record: delivery quality, delays and aftercare.
• Title and charges: mortgages, service charge arrears, disputes.

Construction planning and contract points

The sales contract (SPA) and construction schedule should match the payment plan. Note specific specs, level of finish, penalty clauses and force majeure. Request sample snags and bills of materials. In resale: record inspection report, meter readings, and furniture takeover.

• Milestone definitions and certification moments.
• Finishings, kitchen and bathroom packages, and appliances.
• Delivery deadline and remedies for delays.

Snagging and handover best practices

Short answer: Plan an independent snag for handover. Work with a structured list, including MEP checks, doors/windows, seals and equipment. Record all items, and have the developer restored before key handover. This prevents later rent delays and costs.

• Snag list with photos and deadlines for recovery.
• Testing AC, water pressure, electrical circuits and equipment.
• Documents on handover: keys, access cards, manuals, warranties.

Aftercare And Property Management: Who Arranges What

Handover process and defects

We coordinate the handover and ensure defects are recorded and rectified. The focus is quick rental start-up without loss of service. Materials and warranties are documented so that management starts smoothly.

• Pre-handover snag, recovery rounds and final acceptance.
• DEWA/Ejari and community registrations arranged prior to rental.
• Furniture inventory and professional photography for marketing.

Rental - fees and service levels

To sum up: Long-stay rentals typically have 5 to 8 per cent management fee, short-stay 15 to 25 per cent depending on services. The choice affects net yield and occupancy. We present providers and KPIs so you choose an appropriate formula.

• Long-term rentals: lower fee, more stable occupancy, less cleaning/rotation.
• Short-stay: higher gross sales potential, but variable occupancy and higher costs.
• Service levels: 24/7 guest support, linen, dynamic pricing and maintenance.

Reporting and exit planning

Transparent reporting and annual recalibration of rent and value support better decisions. Together, we determine exit triggers such as IRR target or market price. When selling, we organise staging, photography and agency coordination for a smooth transaction.

• Monthly and quarterly reporting with cash flow and maintenance.
• Annual value test and rent strategy.
• Exit plan with target prices and marketing channels.

Who Matches Which Strategy? (Investor Profiles)

Yield finder

You focus on reliable cash flow and minimal vacancy. We select units with competitive price per sq m, reasonable service charges and proven rental carrying capacity in the neighbourhood. Contractually, we steer for long leases and low rotation.

• Segment: quality mid-market with strong rental demand.
• Location: good accessibility and amenities.
• KPI: net yield and occupancy prioritise value growth.

Value growth finder

You accept more development exposure for increased upside. We screen for master plan catalysts, infrastructure and developer quality. Payment plans are tailored to milestone risk and exit timing (resale pre-handover or after first lease year).

• Segment: emerging zones with upcoming metro/retail.
• KPI: total returns with focus on exit value.
• Risk management: escrow and licence review, buffer in planning.

Low-touch investor

You want relief from A to Z. We deliver turnkey files, arrange handovers and link to trusted administrators. You get quarterly updates and a single contact person for all steps.

• Selection: stable product-market fit with high rentability.
• Management: fixed SLAs and clear reporting.
• Financial: predictable costs, transparent management fees.

Concrete Shortlist: Our 3 Recommendations From This Quarter

Project A - key figures, why, disadvantages, for whom

Recommendation: Mercedes-Benz Places in a central zone with strong branding and amenities.

• Key figures: premium high-rise, expected net yield 4.5 to 5.5 per cent on long lease (indicative).
• Why: iconic branding, prime location and high end-user demand support exit value.
• Cons: Higher service charges than mid-market, lower initial yield.
• For whom: security and reputation-driven investors who prefer long-term value.

Project B - key figures, why, disadvantages, for whom

Recommendation: Trillionaire Residences with a focus on design, amenities and accessibility towards business hubs.

• Key figures: mid- to upper-segment, net yield 5.5 to 6.5 per cent possible at good pricing (indicative).
• Why: strong rental demand due to mix of lifestyle and employment in proximity.
• Cons: Competition in similar segments demands sharp listing and good presentation.
• For whom: yield-seeker with an eye for quality and rentability.

Project C - key figures, why, disadvantages, for whom

Recommendation: LIV Waterside in an established waterfront environment with proven lease-carrying capacity.

• Key figures: waterfront living, net yield 5.0 to 6.0 per cent on long leases, attractive short-stay potential (indicative).
• Why: scarcity of quality waterfront inventory supports both rental and exit.
• Disadvantages: price levels are higher; furnishing and styling are crucial for performance.
• For whom: balanced profile that values both cash flow and liquidity.

Looking for villa exposure instead of flats, check out our guide buy villa in Dubai For segment and neighbourhood comparisons.

Next Steps With House Of Orange (CTA)

15-minute exploratory talk - what we ask, what you get

In a short conversation, clearly translate your goals into a shortlist. We ask about budget, horizon, risk profile and preference for rental type. You will receive 2 to 3 concrete options with cost and yield indications, plus a roadmap to handover.

• Goals and preconditions sharp in 15 minutes.
• Curated shortlist that matches your profile.
• Answers to questions around escrow, fees and tax.

Schedule an interview immediately via Making an appointment.

Process overview (discovery → purchase → handover)

Brief overview: We start with discovery, review projects, negotiate the deal, supervise SPA and registration, and organise snagging and handover. Then we introduce leasing and management partners with clear service levels and reporting.

1. Discovery and shortlisted scenarios.
2. Purchase: booking, SPA, payments and DLD registration.
3. Handover: snagging, delivery, utilities and rental start.

Contact and appointment

Investing in real estate Dubai does not have to be complex. With Dutch clarity and Dubai execution, we make the process predictable, from first call to key transfer. Share your goals, we do the pre-selection and substantiation.

Get in touch via Contact or schedule your intake via Appointment. Prefer to read more and view cases first? Visit our News & Blogs section.

Conclusion: investing in real estate Dubai can deliver solid net rental income and value growth when you handle selection, fees, escrow and taxation professionally. With House of Orange, you get a curated path to returns and a hassle-free handover. Let us build your shortlist.