Dubai has become one of the most attractive cities in the world for both investment and living in recent years. With its modern infrastructure, strong economy, zero income tax advantage and high living standards, it offers a significant opportunity for investors and those who want to start a new life. This guide will cover in detail topics such as renting a house in Dubai, making a housing investment, property tax status, the process for Turkish citizens to buy a house, living costs and Golden Visa.
1. House Rents in Dubai
Housing rents in Dubai can vary greatly depending on the area and the features of the property. There are popular areas in the city such as Downtown Dubai, Dubai Marina, Palm Jumeirah and Jumeirah Village Circle (JVC). Rents in these areas vary depending on both the location and the amenities offered by the property. Especially luxury residences with sea views and residences close to the city center stand out with higher rents.
Rents in Dubai are paid annually and are usually paid in several installments, although some property owners may accept monthly payments.
Average Rental Prices by Region
| Area | 1+1 Flat (Yearly) | 2+1 Flat (Yearly) |
| Downtown Dubai | ~115.000 AED | ~188.000 AED |
| Dubai Marina | ~93.000 AED | ~138.000 AED |
| Palm Jumeirah | ~150.000 AED | ~249.000 AED |
| Jumeirah Village Circle | ~63.000 AED | ~93.000 AED |
In luxurious areas like Palm Jumeirah and Downtown Dubai, housing rents are quite high. In developing areas like JVC, rental prices are more affordable. Therefore, location selection is of great importance for investors.
2. Does It Make Sense to Buy and Rent a House in Dubai?
Dubai is a very attractive area for investors as it is a market that offers high rental yields. The average rental yield ranges from 5% to 8%. Smaller apartments usually have higher yields, but larger and more luxurious residences may have lower yields.
For example:
- While rental yields in developing areas like JVC are around 7-8%,
- In prestigious systems such as Downtown Dubai and Palm Jumeirah, this rate is around 5-6%.
The average payback period for real estate investments in Dubai is between 14-17 years. This rate is quite advantageous when compared to major cities such as London and New York.
Additionally, investors can choose between long-term rentals (annual contracts) or short-term rentals (platforms like Airbnb). While short-term rentals typically provide higher income, they can require more time and effort to manage.
3. Property Tax in Dubai
There is no annual property tax for property owners in Dubai. This increases the net rental income of investors. However, some fees are paid in buying and selling transactions:
- Title Deed Transfer Fee: 4% of the sales price is paid to Dubai Land Department (DLD).
- Real Estate Commission: Generally applied as 2% of the sales price.
- Annual Maintenance Fee: Annual maintenance fees are charged per square meter depending on the project where the residence is located.
An investment plan should be made taking these costs into consideration.
4. Can Turks Buy a House in Dubai?
Yes, Turkish citizens can buy property in Dubai. With the “Freehold Law” that came into effect in 2002, foreigners can own homes with full ownership rights in certain areas.
Freehold Territories:
- Dubai Marina
- Downtown Dubai
- Palm Jumeirah
- Jumeirah Village Circle (JVC)
- Business Bay
The purchase process is quite simple. It is possible for foreign investors to complete the title deed transactions with their passports. Purchases can also be made with a bank loan, but a 50% down payment is usually required.
5. Cost of Living in Dubai
Living in Dubai should be planned in terms of daily expenses in addition to housing expenses. In general, living in Dubai is considered an expensive city when compared to major metropolises around the world.
- Electricity & Water Bills: 500-1000 AED per month
- Internet & Phone: AED 300-500 per month
- Grocery Shopping: 2500-3500 AED per month
- Transport: Metro monthly subscription AED 300, petrol AED 3 per litre
- Healthcare Costs: Private health insurance is usually provided by the employer, but individual insurance can cost around AED 5000 per year.
High salaries and no taxes in Dubai offset this high cost of living.
6. How to Get Golden Visa?
The Golden Visa is the long-term residence visa of the United Arab Emirates and is offered to investors, entrepreneurs and highly qualified professionals.
Investment options to get Golden Visa:
- Real Estate Investment: Those who purchase property worth at least AED 2 million can get a 5-year Golden Visa.
- Entrepreneurship and Business Start-up: Be a business owner with a minimum capital of AED 2 million.
- Specially Talented People: There are specially approved Golden Visa options for professional groups such as scientists, doctors, engineers, and artists.
Golden Visa holders can obtain long-term residence rights in Dubai, including their family members.
7. Can I Buy a Flat in Dubai and Rent It Out?
Investors in Dubai can earn income by renting out the properties they purchase. The process of finding and contracting tenants is quite organized.
Rental Processes:
- Tenants usually sign a yearly contract and pay the rent in 1, 4 or 12 installments.
- Rental transactions are made official by recording them in the “Ejari” system.
- Landlords can increase rents according to the rates set by the Dubai Government.
Dubai offers a stable environment for investors as rental income is taxed and it has an orderly market structure.
Investing in real estate in Dubai offers great opportunities for those who want to make long-term profits with its high return potential and advantageous conditions. It is possible to make a profitable investment in Dubai by choosing the right region and investment strategy.
