Best rental yields in Dubai 2025
Last updated: January 2025
Find out what is a good rental yield in Dubai
Buying property in Dubai is a brilliant option for both resident and international investors. The low, sometimes non-existent, property taxes, visa incentives and very high rental yields make it an attractive place to invest.
Read on to find out the best locations for property investment, where to achieve the best rental yields in Dubai, and what to think about if you’re a foreigner investing in real estate.
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1. What are the best locations for property investment in Dubai?
According to the latest data from Global Property Guide, Al Furjan is a great place to invest in a studio apartment in Dubai in 2025, with average yields of 8.51%. If you’re looking for a one- or two-bedroom apartment, Downtown Dubai offers impressive yields of 6.25% and 6.19%, respectively, though purchase prices are much higher here than in other parts of the city.
JVC offers the best rental yields in prominent city centre areas for something more spacious, with an average of 7.21% for three-bedroom apartments in 2025.
Let’s take a closer look at some of the best areas of Dubai for rental yields in 2025 and how much you can expect to pay for properties:
Buy-to-let Jumeirah Village Circle (JVC)
- Annual yield: Between 6.78% and 7.87%
- Average cost to buy: $328,561
- Monthly rent: $2,014
Jumeirah Village Circle is a development that contains over 350 apartment buildings and townhouse rows. It began construction in 2005, and is built over an area of 870 hectares. The current estimated population is 25.000, but this is expected to grow to as much as 300.000 when the development is complete.
The average rental yield for JVC in 2025 is 7.87% for a studio apartment. If you would like a one-bedroom apartment, the yield drops to 7.04%, while a two-bedroom apartment has an average yield of 6.78%.
The yield for three-bedroom apartments is approximately 7.21%. Given that yields in JVC range from 6.78% to 7.87%, it remains a great place to secure a buy-to-let investment in Dubai in 2025.
According to the latest data from Bayut, the average sale price for an apartment in JVC will be $328,561 in 2025, making it a relatively affordable part of Dubai to invest in, particularly compared to prices in Downtown Dubai.
Buy-to-let Jumeirah Lakes Towers (JLT)
- Annual yield: Between 7.22% and 5.11%
- Average cost to buy: $595,205
- Monthly rent: $2,719
Located on the shores of three artificial lakes, the Jumeirah Lakes Towers (JLT) development has 80 towers over a total area of 1.8km squared. The development is close to Dubai Marina in the northwestern area of the city.
It has a reputation as one of Dubai’s most community-focused neighbourhoods, with diverse residences and lots happening daily. There are brilliant parks, many local restaurants and eateries, and some tremendous co-working specials for freelancers and business professionals.
JLT is a decent prospect for buy-to-let investors. In 2025, the average yield for studio apartments will be 7.22%. Depending on the size and location of the apartment, the average gross rental yield for one- to three-bedroom apartments ranges from 5.86% to 5.11%.
This is a relatively expensive place in the city to buy an apartment, with an average sale price of $595,205. That said, some studio apartments are available here, ranging from $140,000 to $250,000, offering good value if you’re looking for a small place to live in this bustling part of the city.
Buy-to-let Downtown Dubai
- Annual yield: Between 7.92% and 4.11%
- Cost to buy: $1,078,679
- Monthly rent: $6,017
The Dubai Downtown was renamed from Umm Al Tarif in 2000 and is home to some of Dubai’s largest and most famous landmarks. The region is currently home to approximately 13,000 people and is home to a mix of residential, leisure and tourism buildings.
As you might expect from the postcode, Dubai Downtown is one of the most expensive parts of the city to buy a property in, with an average apartment price of over $1,000,000. That said, the average rent in the city is over $6,000 per month, offering decent returns.
Yields range from 4.11% to 7.92% in Downtown Dubai, though the lower end of this scale tends to be for bigger apartments (four bedrooms or more). The best rental yields are for smaller apartments, with studios offering yields of 7.92% and one-bedroom apartments boasting average yields of 6.25%.
Buy-to-let Business Bay
- Annual yield: Between 6.68% and 5.08%
- Cost to buy: $611,145
- Monthly rent: $2,452
Business Bay is a CBD (Central Business District) in Dubai, containing residential, office and commercial developments, many of which are skyscrapers. The population, once the development is fully complete, is expected to be approximately 190.000 people, with even more people employed in the region.
If you rent out a studio apartment in Dubai’s Business Bay, you can expect an annual yield of 6.68% from an average buy price of $312,823. However, bigger apartments are, naturally, more expensive and command less impressive annual yields.
The average buy price for all apartment types in the Business Bay in 2025 is $611,145, with yields ranging from 6.68% to 5.08%. It’s a more attractive option than Downtown Dubai, but there are better value option elsewhere in Dubai, as illustrated in this article.
Buy-to-let Dubai Marina
- Annual yield: Between 6.50% and 3.92%
- Cost to buy: $1,293,632
- Monthly rent: $3,773
Dubai Marina is an artificial marina and canal city situated on the shoreline of the Persian Gulf. It is currently home to approximately 55.000 people, but when completed should have accommodation for up to 120.000 people.
The average rental yield for apartments in Dubai Marina ranges from 3.92% for 4+ bedroom homes to 6.50% for studio apartments. As evidenced by the high average purchase price, Dubai Marina is an expensive place to buy, with apartments going for over $1.2 million on average.
So, if you’re keen to lock in value as a buy-to-let investment, go for a studio with an average purchase price of $355,839 and an expected yield of 6.50%.
Buy-to-let Al Furjan
- Annual yield: 8.51% to 7.06%
- Cost to buy: $699,678
- Monthly rent: $4,836
Al Furjan neighbours Jebel Ali Village, and it is gaining a reputation as one of Dubai’s most outdoor-friendly neighbourhoods, with green spaces, bike tracks, and shared swimming pools all available to residents. There are more than 4,000 apartments, villas, and hotels here.
As in Dubai Marina, purchasing a studio in Al Furjan is a good buy-to-let proposition. The average purchase price is $159,814, with average yields of 8.51% expected. Yields drop to 7.06% for bigger apartments, but this is still a great place to consider if you’re looking for an attractive area to buy just outside the city centre.
Buy-to-let Arjan
- Annual yield: Between 7.58% and 6.39%
- Cost to buy: $266,392
- Monthly rent: $1,824
Arjan is a relatively new district in Dubai, located on the city’s outskirts. Al Barsha South borders it and consists of 50 completed buildings, with more than 30 currently under development. Arjan is home to the Dubai Butterfly Garden and the Dubai Miracle Garden, both popular with visitors.
As part of the Dubailand Megacity project, Arjan is an exciting, up-and-coming district with much to look forward to.
As of 2025, Arjan is also one of the best-value places to buy in Dubai, with average property prices at $266,392, significantly lower than in most areas. What’s more, the average yields here are good, ranging from 7.58% to 6.39%, with average monthly rents just below $2,000.
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2. Is buying real estate in Dubai a good investment?
Dubai’s booming tourism sector and low mortgage registration fees make it an excellent place to invest in real estate. On top of this, those buying real estate will benefit from some of the best rental yields in the world and very low (or non-existent) taxes on their income.
3. What is a good rental yield in Dubai?
In addition to the high rental yields, property is cheaper per square foot than many other places in the world. In addition to this, the absence of many typical property taxes such as stamp duty land tax and capital gains tax makes it a very attractive market for real estate investors. Lastly, in many cases, if you buy property in Dubai you are entitled to a residency visa. The length of the residency visa is roughly proportional to the value of the property that you buy.
4. Why invest in property in Dubai?
Dubai’s booming tourism sector and low mortgage registration fees make it an excellent place to invest in real estate. On top of this, those buying property in Dubai will benefit from some of the best rental yields in the world and very low (or non-existent) taxes on their income.
5. What is the tax on rental income in Dubai?
There is no income tax for those working in the United Arab Emirates, even if you are not a full-time resident. Instead, tenants of properties pay a rental tax. If you are not resident in Dubai then you may still have to pay income tax on the rental income in the country that you reside in. There is currently no capital gains tax in the UAE.
6. Can foreigners buy property in Dubai?
Yes, investors of any nationality and residency can purchase property in Dubai, provided it has been allowed by His Highness the Ruler of the Emirate of Dubai. Foreign investors often choose to invest in real estate because of the high average rental yields and cheaper finance options.
7. Is now a good time to invest in property in Dubai?
Dubai’s economy is once again thriving, and with increasing property prices and rents, 2025 is a great time to invest in both short-term and long-term rentals in Dubai.
8. Short, medium or long term?
Long-term rental investments tend to be lower-yielding, but many investors choose this route because it is seemingly easier to achieve and gives a more secure return due to stable rental demand. Long-term rental investments tend to be better suited to residential and academic areas of a city.
On the other hand, short-term rental investments, like Airbnb accommodation, produce much higher yields for investors. These types of investment properties are better suited to touristic areas, of which Dubai has many.
9. Invest in Dubai with GuestReady
GuestReady assists those looking to invest in Dubai real estate at every stage of the process. We can provide you with estimated figures of returns on particular investment strategies, and help you to start a profitable short-term let business.
We provide 24/7 communication with guests in several languages, deal with reservations management, online listings optimization, and provide cleaning services and maintenance management, among many other services.
The high yields of up to 8.5% and numerous tax and visa benefits make it a great market to invest in property in 2025.
If you’re planning on buying real estate in Dubai, GuestReady will help you understand the expected return for your property or future property and present you with short and mid-term rental management plans for a hassle-free new business. To find out more, calculate your income, or fill out the form and our experts will call you.
