Dubai Real Estate Dominates Global Markets, Offering Unparalleled Yields Up to 11%

While prime global hubs like London, New York, and Singapore offer modest gross rental yields of 2-4%, Dubai’s market stands in a league of its own. Investors are consistently rewarded with highly competitive average yields of 6-8%, enhanced by a favourable tax-free environment—with no property or capital gains tax—and the security of freehold ownership in designated areas.

The affordable apartment segment continues to be a cornerstone for stellar returns. Communities such as International City, Dubai Investment Park (DIP), and Discovery Gardens have emerged as top performers, achieving remarkable gross rental yields between 9% and 11%. This success is driven by high occupancy rates, unwavering tenant demand, and accessible entry points, making them magnets for savvy investors.

The demand for spacious living has propelled villa communities to impressive returns. DAMAC Hills 2, Dubai Industrial City, and Serena have yielded gross returns exceeding 5.85%, attracting long-term residents with their enhanced infrastructure and family-friendly amenities.

Meanwhile, popular mid-tier communities including Town Square, Mudon, Living Legends, and Al Furjan have recorded robust yields between 7% and 10%. Their strategic locations, excellent transport links, and appeal to end-users seeking value and quality of life continue to underpin this strong performance.

The luxury segment demonstrates sustained vitality, with prestigious areas like Al Sufouh, Green Community, Dubai Creek Harbour, and Jumeirah Golf Estates achieving gross yields of 5.9% and above. While yields are naturally adjusted by higher capital values, investment here is strategically driven by significant potential for capital appreciation and powerful end-user demand.

Bayut reports a pivotal evolution in how investors evaluate opportunities. The focus has expanded from pure rental yield to a holistic view encompassing long-term capital growth, demographic trends, future infrastructure projects, and community maturity.

This sophisticated approach is empowered by tools like Bayut’s TruEstimate™, which provides local and international investors with accurate, data-driven insights, fostering a more transparent and mature market.

Haider Ali Khan, CEO of Bayut and Dubizzle Group MENA, states: “Dubai is no longer just a regional leader; it is a premier destination on the global property stage. Its unique appeal lies in a powerful combination of compelling returns and enduring value, all within a transparent and incredibly investor-friendly framework. Our mission is to equip buyers and investors with the critical data and intelligence they need to make empowered decisions and maximize their investment potential.”

Bayut’s H1 2025 analysis confirms that Dubai offers a rare balance of immediate income and sustained capital growth. Bolstered by visionary infrastructure projects, stable regulatory oversight, and unwavering demand from both investors and residents, Dubai’s real estate market continues to be one of the most attractive and resilient in the world.

With unparalleled yields and a tax-free advantage, there’s no better time to invest. Contact our expert team today for personalized data-driven insights and exclusive access to off-plan and ready properties that match your investment goals.

Source : Arabian Business

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