➊ Rising rents
Between 2023 and 2024, apartment rents increased by 15.4%, reaching an average annual rent of $24,800. The largest increase of 18.5% was recorded for one-bedroom apartments.
➋ Demand growth
Nearly 3 million people, or 77% of Dubai’s population, prefer to rent real estate. The number of people living in the emirate is growing every year: from January to September 2024, it increased by 130,000.
➌ High yield on rents
Dubai’s average gross annual rental yield is 8%. Against:
New York – 5.3%
Moscow – 3.7%
London – 3.6%
➍ Stability
80% of tenants prefer long-term rentals (5-15 years). Payments are typically made in advance for the entire year, guaranteeing owners a significant sum.
➎ Return on investment
In Dubai, the average payback period for rental properties is 9 years. Against:
New York – 17 years old
London – 24 years old
Moscow – 27 years old
➏ Tax advantages
Rental income in Dubai is tax-free. In London, on the other hand, taxes can reach 45%.
➐ Stable currency
The United Arab Emirates (AED) dirham is pegged to the US dollar, offering income stability and protection from currency risks.
