Myths about investing in Dubai – busted!

Dubai is one of the world’s most exciting property markets. The city is a global hub that attracts investors from around the world. However, despite its growing reputation for innovation, high returns and investor friendly infrastructure, myths and misconceptions about Dubai investments continue to circulate.

From outdated assumptions about ownership rules to misunderstandings about cost and risk, these myths often stop buyers from seizing a perfect opportunity. This is why we’re setting the record straight.

Read on as we bust five of the most common myths about investing in Dubai property and show you why now might be the perfect time to make your move.

Myth 1: Foreigners can’t buy property in Dubai

Busted: Foreigners can invest in property in the UAE, Dubai included, and they’ve been doing so for years.

Since 2002, international investors have been able to purchase freehold properties in designated zones across Dubai. Freehold ownership means full ownership of the property and the land it sits on. This is a right that many overseas investors enjoy without any residency requirements.

There are numerous areas in Dubai where foreigners can buy freely. Some of the most popular of these include:

• Business Bay: Ideal for professionals and investors alike.
• Downtown Dubai: Home to the Burj Khalifa and world class amenities.
• Dubai Marina: A favourite destination for waterfront living and high rental yields.
• Jumeirah Village Circle (JVC): Affordable and with high growth potential.
• Palm Jumeirah: One of the city’s most iconic addresses.

Dubai’s property market is open, accessible and backed by clear legal structures that protect foreigners who want to invest in real estate in the UAE.

Myth 2: you need to be a millionaire to invest in property in Dubai

Busted: You don’t need seven figures in the bank to realise your dream of Dubai investment, especially when it comes to the property market.

Dubai offers a wide range of investment options, including entry level apartments starting from as little as AED 500,000 (approximately £110,000). Areas such as Arjan, Dubai South and JVC provide affordable units that still deliver excellent rental yields and strong capital appreciation potential.

You can also take advantage of Off Plan properties, which allow investors to spread payments over a construction period, sometimes with as little as 10 to 20% down initially. Many developers offer flexible post-handover payment plans, making property investments in the UAE more accessible than ever.

Mortgage financing is available to foreigners who don’t live in Dubai. Banks in the UAE typically offer financing of between 50 and 70% of the property value, depending on your profile. This makes it easier to invest without the need to pay the full purchase price upfront.

Myth 3: the Dubai property market is a bubble

Busted: Dubai’s market is maturing, not bursting.

Yes, the early 2000s saw rapid booms and corrections, but today’s market is a different story. The government has implemented a range of smart policies and regulatory frameworks to support long term growth and stability. The key elements driving the sustainability of Dubai’s property market include:

• Population growth: Dubai’s population is projected to climb to 5.8 million by 2040.
• Strong rental demand: The city’s strong rental demand is fuelled by high inward migration and a flexible expat culture.
• Expo 2020 legacy: The expo led to a boost in infrastructure, tourism and business confidence.
• Economic diversification: The Dubai economy is moving away from oil and towards tourism, technology and innovation.

The Dubai Land Department (DLD) and Real Estate Regulatory Authority (RERA) enforce strict rules for developers and estate agents, providing a much more secure environment for those interested in property investment in the UAE.

Myth 4: you need to live in Dubai to invest

Busted: Remote Dubai investments are not only possible, but they’re also incredibly common.

Many overseas investors never set foot in the UAE before making their purchase. The entire process can be done remotely, thanks to digital contracts, video tours, online document processing and the support of licensed real estate agents such as haus & haus.

If you’re considering longer term involvement, you’ll be pleased to know that Dubai offers investor visa options. These allow property buyers to secure residency visas for themselves and their families when purchasing qualifying assets. This is a popular choice for investors who want added flexibility or who plan to spend more time in the UAE.

Even without a visa, purchasing and owning property is simple and secure. Property titles are registered in your name and protected by the city’s strong legal system.

Myth 5: Dubai property investment is too risky

Busted: Dubai’s property sector is built on strong foundations, with excellent protection for investors.

Tax efficiency is one of the biggest advantages of Dubai investment. There’s no property tax, no capital gains tax and no income tax on rental returns, all of which help boost net return on investment (ROI) for investors.

The market is also governed by strict laws and clear processes. RERA and DLD regulate real estate transactions and ensure developers meet delivery milestones. Escrow accounts are mandatory for Off Plan purchases. These accounts keep your money safe until construction reaches important stages. Written for those who want to invest in property in the UAE, our Dubai Real Estate Investment Playbook sheds more light on the market and the opportunities it offers.