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Dubai Offers Higher Rental Yields Than London, Singapore and Hong Kong

Dubai property is showing consistently higher rental yields than its rival markets in London, Singapore, Hong Kong and India. We have recognised its potential at Aspen Woolf, offering a whole host of investment opportunities from various parts of the ever growing city.

Dubai Real Estate

As the biggest and most populous city in the entire United Arab Emirates, Dubai has attracted widescale investment throughout the 21st century. Ultramodern architecture, luxury retail outlets and stunning beaches have generated a thriving tourist scene, together with its more liberal approach to western customs.

This has created a booming property market, especially in terms of rented accommodation. Wealthy holidaymakers and business people regularly visit Dubai, helping generate impressive rental yields across the city.

As another bonus, the announcement of Expo 2020 being held in Dubai will bring massive interest in the rental sector. An expected 25 million visitors will flock to the Emirate over a six-month period – and they’ll all need somewhere to stay.

Rental Yields

Comparing Dubai with other high-end property hotspots shows a consistent difference in rental income. This has been noted by Imrann Nawab, a sales manager at SPF Realty. He points out:

“The average rental yield for properties in Dubai is approximately 7-8%, while the real estate market in India gives a return of 1-3% and Europe provides 2-5%”.

Likewise, there’s also a positive trend across the whole of Dubai – not just the commercial centres. Nawab continues:

“Properties in prime locations offer rental returns of about 5-7% and there are areas that even provide 10-12%. For instance, in areas like International City where property prices are low, investors buying studios and one-bedroom apartments can easily achieve a healthy return of 10% on their investment.”

Contributing Factors

As to why Dubai is achieving these positive returns lies in its attraction to modern investors, especially when compared to stagnant market rivals. There’s less room to expand in a city such as London, and as recent findings show, growth there is stagnating.

Likewise, as a relatively new market, Dubai property is more affordable than contrasting cities in Europe and Asia. New developments are therefore quickly snapped up by tourists and locals alike, adding confidence to the sector. Of course, the favourable UAE tax conditions should also be mentioned – a major pull for savvy investors.

Another factor are the various ‘sweeteners’ local estate agents are offering, as well as a desire to correct some overpriced properties. For example, post-handover payment plans allow investors to collect monthly rents whilst the property is still being paid for.

With solid yields, Dubai looks set to continue as a hotbed for buy-to-let investors. Expected capital appreciation is another bonus, providing a desirable exit route after the excitement of Expo 2020 has died down.

However, as you’re dealing with foreign property, it’s almost imperative you go through a professional estate agent. At Aspen Woolf, we deal exclusively with Dubai’s most trusted developers to secure rental yields for our investors over a set period.


You can take a look at our Dubai property opportunities here.

If you’d like to know more about Dubai, you might be interested in 11 fun facts about Dubai.