How to invest in rental property in Dubai?

In France, and indeed in the rest of the European Union, a rental investment tends to have a yield of 6 or even 7% gross. At these levels, it's considered an excellent investment. But the aim of any investor is to generate as much profit as possible. In Dubai, this is entirely possible.

Indeed, the latest figures show that rental yields in the heart of the small emirate can reach 7 to 12% net. In the rest of this article, Immobilier Dubai, your French-speaking real estate agency based in the heart of the emirates, gives you all the information you need to make your investment a success.

1. Choose the right neighborhood

So how do you make a success of your rental investment in Dubai? The first criterion to take into account to ensure the success of your investment project in Dubai is the neighborhood in which you will be investing your marbles.

In fact, it's best for you to target neighborhoods where rental demand is strong. To do this, you need to determine what type of tenant you're targeting: expatriates, alone or as a couple? Expatriate families already well established? Expatriates about to arrive? Young people on limited incomes, or couples/families with more solid financial situations?

For the best possible investment, we recommend targeting specific neighborhoods, such as Business Bay, Arjan, JVC (Jumeirah Village Circle) or Meydan. These are relatively popular areas for people wishing to rent a property on a medium- to long-term basis. Neighborhoods like Downtown should be avoided, as they are more expensive and generally don't offer good rental yields.

2. What type of property should I choose?

In addition to the question of neighborhood, there's also the question of the type of property to invest in. Generally speaking, the highest-yield investments are made in studios and T2 apartments (one-bedroom apartments). The latter are particularly well suited to short- and long-term rental.

Demand for this type of property is quite strong. They are mainly aimed at young people and expatriates who don't necessarily want to buy their own home as soon as they arrive in Dubai. What's more, very few people want to buy a studio apartment to live in all year round. In fact, these are the most suitable solutions!

3. The payment plan is important

Unlike in France, buying a home in Dubai is based on a payment plan, with no additional costs. This means maximum profitability when you manage to spread your payments as evenly as possible.

The objective? To find a real estate program that involves paying a large percentage of the purchase price over several years after delivery of the property. The idea here is to get your tenants to pay for your property, without you having to invest anything (or very little). This is undoubtedly the key to success for your rental investment project in Dubai.

4. Rental management

What if you're investing in Dubai, but don't live there? There's only one solution: rental management. At Immobilier Dubai, we can offer you this service. Whether you're looking for a short or long-term rental, we'll find your future tenants for you with a premium, French-style service.

Unsurprisingly, short-term rentals offer the best returns, particularly via AirBnb. It's possible to reach or even exceed 12% net profitability through this type of medium. So don't hesitate to ask for advice.

5. Don't say no to quality

When it comes to real estate, it's best to stick to quality. In fact, be careful who you work with! Select the best service providers and real estate agencies, those who work hand in hand with real estate developers recognized for the quality of their services.

So, for a few extra thousand euros, you can position yourself on a property of exceptional quality, far more promising than elsewhere.

Are you still hesitating before taking the plunge into real estate investment in Dubai? Don't hesitate to contact us. Our teams are at your entire disposal, and will be delighted to hear from you and suggest the projects best suited to your needs and objectives.

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