Why UAE Real Estate Continues to Attract Global Investors?

Dubai! The name that does not require any introduction, and the reason for this tremendous popularity is its unbelievable architecture, zero tax on income and capital gains, security, lavish lifestyle, and more. With the increasing popularity, everyone wants to be a part of Dubai, not only by residing there but also for investment purposes. As per the Q2 results, Dubai's real estate growth is 25% YOY, with a hefty transaction of more than AED 431 billion, which is more than enough to measure the growth of any country. In the first half of 2025, DLD (Dubai Land Department) has recorded 125,538 real estate transactions in comparison to 99,747 from the first half of last year, which is almost 26% more. According to a Bloomberg report, the luxury homes with a cost of $10 million have jumped to a huge height of $2.6 billion in the second quarter.


Dubai has always attracted global investors to its real estate market, and the investors have gotten the highest return on investment through the varied projects. If you want to know why global investors have been attracted to the Dubai real estate, then you must read this post to get a proper answer to this.

Reasons Why Dubai Real Estate is Attracting Global Investors:

Strong ROI: Dubai has a huge annual ROI of up to 8% as compared to any other country, from varied sources, whether it's residential property, commercial, or rental yield. This ROI may increase and completely depend on the property's type, location, and market conditions.

Tax Benefits: One of the most important factor that attract every investor to invest in Dubai is its zero percent property tax. Hence, a small VAT of up to 5% is applicable on the commercial property's sale or lease. This zero percent annual tax in Dubai on capital gains and income helps investors earn more ROI and purchase more real properties.

Upcoming Projects: In 2025, Dubai is ready to introduce varied luxurious projects in different parts of the city. These ultra-luxury projects include The Oasis and Palm Jebel Ali, Dubai Maritime City, Dubai Metro's expansion, Bugatti Residences, Mercedes-Benz Places, and more. The completion of these projects opens the door for the people who want to purchase, rent, and do business here. The global investors are investing in these properties for rental or selling at the best price to get the highest ROI.

World-Class Infrastructure: Dubai is equipped with varied world-class buildings and unbelievable infrastructure, whether it's Burj Khalifa, Dubai Mall, or Jumeirah Burj Al Arab. It attracts investors across the globe to invest in Dubai because they will not only get the best returns on their investment, but they can also add a dream landmark to their favorite place's list at the top.

Global Connectivity: Better connectivity means ease of transportation, and Dubai has the world's best connectivity, not only within the city, but also connects it to every part. From the world's largest and busiest airport to the advanced metro rail, everything keeps Dubai connected not only with the residents of its own city but also with people from all over the world. A good investor always looks for such locations for the investment, so that they can get the highest value on their invested money.

High Rental Yields: Dubai has the best high rental yield ROI, which is sufficient to impress any global investors who want to invest there. For example, an average rental income from an apartment near Burj Khalifa is AED 2,000,00, which goes up according to the type of apartment and amenities. So, the total ROI from these apartments is between 4%-6% annually, which is decent, and any investor definitely searches for it. This rental income also exceeds the ROI as per the location because many locations and places in Dubai are in high demand, and a majority of people want to rent their dream home in these places.

Conclusion:

Dubai has been a top-listed place for individuals, tourists, and investors from all over the world. In the past many years, a vast population from different countries moved to Dubai due to its tax-free policies and proper infrastructure. There is no doubt that investing in Dubai is a profitable thing and a good idea to get the highest benefits on the invested money.