Market research
Focus: Dubai. Transactional UAE path available below.
Last verified: 2026-07-01
Foreign ownership
DLD transfer fee
Agency commission
Trustee, title deed and admin fees
Mortgage registration (if financed)
Total transaction cost
Transaction costs cannot be financed
Gross yield range
Net yield range
Yield data disagreement
Sources disagree meaningfully on the UAE headline figure. Global Property Guide put the UAE-wide average gross yield at 4.94% in Q2 2026 (down from 5.45% in Q4 2025), while Dubai-specific sources (Property Finder, Engel & Völkers) report 6.7–7.4%. The gap is real: the UAE blended average includes lower-yielding emirates, and Dubai runs above it. Use Dubai-specific figures for Dubai decisions.
as of 2026-05 · source
Rental income tax
Capital gains tax
Annual property tax
Residency pathway
The AED 2M threshold survived the April 2026 rule changes and remains in force. Key 2026 changes: the previous requirement to have paid 50% (or AED 1M) upfront was removed in February 2026 — qualification is now based on the full DLD-certified property value regardless of mortgage status, provided the lending bank issues a No-Objection Certificate. Off-plan units from RERA-approved developers qualify. Up to three properties can be combined to reach the threshold. Property must be in a designated freehold zone. No minimum stay requirement — residency survives absence beyond 180 days. Holders can sponsor spouse, children of any age, and parents. A separate 2-year property investor visa exists with no minimum value for sole owners following the April 2026 reforms — do not confuse the two.
Non-resident mortgage
Setup timeline
Market conditions
ValuStrat recorded the first quarterly residential price decline since 2020 in Q1 2026, following a regional security disruption in late February and March; activity rebounded in April. CBRE reported rental growth easing to roughly 4.1% year-on-year in Q1 2026 as new supply approached. The practical effect for buyers: more negotiating room on agency commission, developer incentives and mortgage fees than during the 2024–25 boom.
Key risks
A significant delivery wave is scheduled for 2026–2027. Business Bay alone has reported 15,000+ new units due. In oversupplied pockets, tower selection now matters more than neighbourhood selection — a good unit in an average area can outperform a weak unit in a famous one.
At AED 10–32/sq ft annually, service charges can consume 8–15% of gross rent and are set by building management, not negotiated by the landlord. They are the primary reason an advertised 8.5% gross yield becomes a 5.5–6.5% net. Verify the building-specific figure on the DLD index before buying.
Off-plan carries lower transaction costs but exposes the buyer to developer delivery, specification and handover-timing risk. Escrow protections exist under RERA but do not eliminate delay risk.
The 9–10% gross figures marketed in fringe communities are statistically real but operationally unstable — they assume continuous occupancy in markets with rising supply and high tenant churn. Underwriting at 100% occupancy is the most common modelling error; a realistic vacancy allowance is 5–8% of annual rent in prime areas and 8–12% in high-churn communities.
FAQ
Freehold ownership permitted for all nationalities in designated freehold areas. Dubai has 60+ designated freehold zones including Downtown Dubai, Dubai Marina, Business Bay, JVC, Dubai Hills Estate and Palm Jumeirah. No nationality restrictions in these zones; leasehold applies elsewhere.
as of 2026-07 · source (opens in a new tab)
Published gross yields for Dubai apartments sit in the 5.5–8% range. Dubai apartments; market-wide apartment average sits around 6.5–7% gross. Villas run 1.5–3 points lower (roughly 4.5–6%). Mid-market communities (JVC, Arjan, Dubai Silicon Oasis, Discovery Gardens) reach 7.5–9.5% gross; prime districts (Downtown, Palm Jumeirah) sit at 4–6% by design — those are capital-preservation plays, not income plays.
as of 2026-07 · source (opens in a new tab)
Indicative total entry costs are 7–10% of purchase price (ready property); 4–6% (off-plan). Transfer (DLD) fee is 4%; agency fees are typically 2% + 5% VAT (effective 2.1%).
as of 2026-07 · source (opens in a new tab) · as of 2026-07 · source (opens in a new tab)
Golden Visa — 10-year renewable residency from AED 2,000,000 property investment. The AED 2M threshold survived the April 2026 rule changes and remains in force. Key 2026 changes: the previous requirement to have paid 50% (or AED 1M) upfront was removed in February 2026 — qualification is now based on the full DLD-certified property value regardless of mortgage status, provided the lending bank issues a No-Objection Certificate. Off-plan units from RERA-approved developers qualify. Up to three properties can be combined to reach the threshold. Property must be in a designated freehold zone. No minimum stay requirement — residency survives absence beyond 180 days. Holders can sponsor spouse, children of any age, and parents. A separate 2-year property investor visa exists with no minimum value for sole owners following the April 2026 reforms — do not confuse the two.
as of 2026-05 · source (opens in a new tab)
None. No personal income tax on rental earnings for individuals. A 9% UAE corporate tax may apply to net rental income above AED 375,000 where property is held in a corporate structure. Residential rentals are VAT-exempt; 5% VAT applies to commercial property.
as of 2026-05 · source (opens in a new tab)
Since a UAE Central Bank directive effective February 2025, banks may NOT roll transaction costs into the mortgage. DLD fees, agency commission, trustee and admin charges must all be paid in cash upfront. A buyer needs roughly 25–30% of the purchase price in liquid cash for a mortgaged ready-property purchase (20% down payment plus 7–10% fees), not 20%.
as of 2026-03 · source (opens in a new tab)
UAE enquiry
This form routes to CoreSpaces Realty LLC in Dubai. We can advise on UAE property only — not on transactions in other markets covered on this site.
CoreSpaces Realty LLC is RERA-licensed to broker property in the UAE (ORN 253900901). If you enquire, a member of our licensed UAE team will contact you about UAE property only. CoreSpaces is compensated by developer/referral commission on completed UAE transactions, disclosed to you before you commit. We are not tax, legal, or immigration advisers.
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