Best rental yields in Dubai
Buying property in Dubai continues to be a smart move for residents and international investors who want strong returns with minimal hassle. The city offers zero income tax, appealing visa options, and rental returns that outperform many major cities. These advantages make Dubai a place where you can grow your portfolio while enjoying a clear and predictable investment environment. At GuestReady, we see this pattern every day when we work with owners who trust the city for both stability and growth.
If you are exploring opportunities for 2026, the market offers a wide mix of neighbourhoods that suit different strategies. Some areas provide excellent affordability with steady demand, while others deliver higher purchase prices matched by strong rental income. As you look through the top districts and compare yields, our goal is to help you understand not only where returns are highest, but also where your property will perform best based on guest behaviour, occupancy trends, and the service level you want. With the right support and data driven guidance from GuestReady, you can enter the market with clarity and confidence.
Read on to discover the best locations for property investment, where to achieve the highest and best rental yields in Dubai i in 2026, and what to consider if you’re a foreign investor.
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 flat in Dubai in 2026, with average yields of 8.51%. If you’re looking for a one- or two-bedroom flat, 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 flats in 2026.
Let’s take a closer look at some of the best areas of Dubai for rental yields for 2026 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 flat 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 was 7.87% for a studio flat. If you would like a one-bedroom flat, the yield drops to 7.04%, while a two-bedroom apartment has an average yield of 6.78%.
The yield for three-bedroom flat was 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 2026.
According to the latest data from Bayut, the average sale price for an flat 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 flats was 7.22%. Depending on the size and location of the apartment, the average gross rental yield for one- to three-bedroom flat ranges from 5.86% to 5.11%.
This is a relatively expensive place in the city to buy a flat, with an average sale price of $595,205. That said, some studio flats are available here, ranging from $140,000 to $250,000, offering good value if you’re looking for a small place to live or to invest 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 flats (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 was $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 was 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.
GuestReady is an international property management company present worldwide and professionally managing properties around the globe. Are you planning on starting a short-term rental business? Get in touch with our team of experts today.
2. Is buying real estate in Dubai a good investment?
Dubai offers a property market that attracts a wide range of investors because it combines steady demand with clear financial advantages. The city’s tourism industry keeps growing each year, which supports strong occupancy levels for both short term and long term rentals. Investors also benefit from purchase costs that are lower than in many major cities, especially when it comes to mortgage registration and ongoing ownership expenses. Since rental income is not taxed in the UAE, the returns you generate stay with you, creating a clearer path to profit. When these factors come together, Dubai becomes a place where investors can build reliable income streams, expand their portfolios, and feel confident that the market will keep rewarding well planned decisions.
3. What ar a the best rental yields 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 stands out as an appealing place to invest because it offers a mix of financial advantages and long term demand that is rare to find in other global cities. The tourism sector keeps expanding, bringing millions of visitors each year and creating consistent rental activity across both holiday homes and serviced apartments. This steady flow of guests supports strong occupancy and helps property owners enjoy reliable income throughout the year. The process of buying is also straightforward, with registration costs that remain lower than in many other major markets.
Investors benefit even further from the city’s approach to taxation, since rental income is not taxed and there is no capital gains tax when you sell. These conditions make it easier to reach meaningful returns and grow your property portfolio with clarity. Combined with modern infrastructure, ongoing development plans, and a safe environment for international buyers, Dubai offers a setting where your investment is well positioned to perform.
5. What is the tax on rental income in Dubai?
Dubai offers one of the most appealing tax environments for property investors. There is no income tax on earnings generated from rental activity in the United Arab Emirates, which means the revenue you collect stays with you. This applies even if you are not a full time resident. Instead of taxing landlords, the system places a rental fee on tenants, which simplifies the owner’s financial planning and makes long term projections easier to manage.
If you live outside the UAE, you may still need to declare your rental income in your home country, depending on its regulations. Even with that possibility, the absence of capital gains tax in the UAE remains a strong advantage, since you keep the full profit when you eventually sell your property. This creates a clear and predictable investment climate that many international buyers appreciate.
6. Can foreigners buy property in Dubai?
Foreigners can purchase property in Dubai without restrictions related to nationality or residency, as long as the area is open to freehold ownership under the direction of His Highness the Ruler of Dubai. This openness has encouraged a steady flow of international capital into the city, helping make Dubai a welcoming environment for buyers from around the world.
Many international investors choose Dubai because it offers strong rental returns, straightforward procedures, and access to a range of financing options that can be more affordable than in other global markets. The buying process is transparent, the legal framework is designed to protect investors, and the overall experience is well suited to those looking to enter the market confidently even from abroad.
7. Is now a good time to invest in property in Dubai?
Dubai’s economy continues to show strong momentum, supported by growing tourism, rising demand for housing, and ongoing government initiatives that encourage investment. These factors have contributed to rising property prices and healthy rental levels across the city, creating solid conditions for both short term and long term rental strategies in 2026.
For investors, this means there are opportunities in both established neighbourhoods and new communities that are gaining attention. If you plan to operate a holiday home or a long term rental, the combination of strong returns, a stable market environment, and a supportive legal framework makes the present year a promising moment to take action. With the right planning and guidance, it is possible to secure a property that performs well from the start and continues to grow in value over time.
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 2026.
If you’re planning on investing on the best rental yields 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.
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