Question 1

What is a good ROI for Dubai real estate?

Accepted Answer

A good gross rental yield in Dubai ranges from 5-8% depending on the area. Net yields after all expenses typically range from 3-6%. Areas like JVC and JLT offer higher yields (7%+), while premium areas like Palm Jumeirah and Downtown offer 5-6% with stronger capital appreciation.

Question 2

Can expats buy property in Dubai?

Accepted Answer

Yes, expats can buy freehold property in designated areas of Dubai. The minimum down payment for expats is 25% for properties under AED 5M and 20% for properties over AED 5M. All 9 areas covered by DubaiROI (Marina, JBR, Business Bay, Downtown, JLT, Creek Harbour, Palm Jumeirah, Dubai Hills, JVC) are freehold zones.

Question 3

What are the buying costs for Dubai property?

Accepted Answer

Total upfront costs include: 4% DLD (Dubai Land Department) registration fee, 2% agency commission, AED 4,000-5,400 in admin/registration fees, plus your down payment (minimum 25% for expats). DubaiROI calculates all these costs automatically.

Question 4

Should I invest in short-term or long-term rentals in Dubai?

Accepted Answer

Short-term rentals (STR/Airbnb) generate 20-40% higher gross revenue but have significantly higher operating costs: 18% management, 8% platform fees, cleaning, DEWA, and tourism tax. Long-term rentals (LTR) have lower revenue but much lower costs since tenants pay utilities. Use DubaiROI to compare both strategies for any property.

Question 5

How does EIBOR affect my Dubai mortgage?

Accepted Answer

EIBOR (Emirates Interbank Offered Rate) is the base rate for UAE variable-rate mortgages. Your mortgage rate = EIBOR + bank spread (typically 0.5-1.0%). DubaiROI uses the current 3-month EIBOR rate and lets you stress-test your investment against EIBOR increases of up to 1%.

Question 6

Which Dubai area has the best rental yield?

Accepted Answer

As of 2026, JVC (Jumeirah Village Circle) and JLT (Jumeirah Lake Towers) consistently offer the highest gross rental yields at 7-7.5%. Business Bay and Dubai Hills follow at around 6%. Premium areas like Palm Jumeirah and JBR offer lower yields (4.5-5.5%) but stronger capital appreciation. DubaiROI updates these figures daily from live Bayut listings.

Expense	Annual	%
Management (8%)	AED 9,200	8.0%
Service Charges	AED 13,500	11.7%
Insurance & Maintenance	AED 4,000	3.5%
Total OPEX	AED 26,700	23.2%

Item	Amount
Down Payment (25%)	AED 250,000
DLD Fee (4%)	AED 40,000
Agency Fee (2%)	AED 20,000
Reg. & Valuation	AED 5,400
Total Upfront	AED 315,400

Year	Property Value	Loan Balance	Equity	Annual CF	Cumulative CF	IRR
1	AED 1,050,000	AED 733,022	AED 316,978	AED 39,036	AED 39,036	6.2%
2	AED 1,102,500	AED 715,290	AED 387,210	AED 39,036	AED 78,072	19.6%
3	AED 1,157,625	AED 696,772	AED 460,853	AED 39,036	AED 117,108	22.8%
4	AED 1,215,506	AED 677,432	AED 538,074	AED 39,036	AED 156,144	23.5%
5	AED 1,276,282	AED 657,234	AED 619,048	AED 39,036	AED 195,180	23.5%
6	AED 1,340,096	AED 636,140	AED 703,956	AED 39,036	AED 234,216	23.1%
7	AED 1,407,100	AED 614,110	AED 792,990	AED 39,036	AED 273,252	22.6%
8	AED 1,477,455	AED 591,103	AED 886,352	AED 39,036	AED 312,288	22.0%
9	AED 1,551,328	AED 567,075	AED 984,253	AED 39,036	AED 351,324	21.5%
10	AED 1,628,895	AED 541,980	AED 1,086,915	AED 39,036	AED 390,360	21.0%

Vacancy	-0.5%	0%	+1%
+0%	AED3K	AED3K	AED3K
+10%	AED3K	AED2K	AED2K
+20%	AED2K	AED1K	AED1K

Vacancy	-15%	0%	+15%
+0%	AED2K	AED3K	AED5K
+10%	AED1K	AED2K	AED4K
+20%	AED432	AED1K	AED3K

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