Dubai Offers Some of the Highest Rental Yields Worldwide

Dubai continues to deliver some of the highest rental yields in the world, with the emirate firmly ahead of most mature global luxury markets. Current statistics show that Dubai’s residential rental yields typically range between 6% and 8% annually. In some cases, yields recorded in 2025 reached as high as 11.2%. These figures significantly outperform returns seen in many established cities.

Stronger Returns Than Global Peers

When compared internationally, Dubai stands out. As per recent market reports, average rental yields in other luxury markets are:

• Tokyo: 4-6%

• New York: 3-5%

• Berlin: 3-5%

• Amsterdam: 3-5%

• Sydney: 3-4%

• Melbourne: 3-4%

• Hong Kong: 3%

• Singapore: 2.5-4%

Why Dubai Outperforms

The city is first and foremost one of the leading tourist destinations worldwide. 2025 saw Dubai welcome 19.59 million international visitors, a record-breaking performance for the third year in a row. This sustained tourist influx has translated into sustained short-term rental demand, enhanced by further factors such as the convenient laws governing Airbnb’s.

Long-term rental demand is also a prevalent trend driven by residents attracted to the city for a variety of reasons. Dubai offers no personal income tax or capital gains tax for individual investors, while corporate tax remains low. Government reforms like the uber-popular Golden Visa programme have also strengthened demand. As a result, almost 10,000 high-net-worth individuals relocated to the U.A.E. last year, the highest influx globally and with most shifting to Dubai.

Additionally, the U.A.E. dirham remains pegged to the American dollar, which provides currency stability and reduces exchange rate risk. The city’s location between east and west also greatly facilitates global business activity.

Coveted Communities

Happily for Dubai, these high-performing rental yields are not concentrated in a few select communities, but rather spread out across multiple locales.

Dubai Marina and Business Bay deliver yields between 6% and 8% in many cases, while Downtown Dubai averages 5% to 7%, supported by its central location. Emerging areas such as Jumeirah Village Circle and Dubai South have been reported to offer gross yields between 7% and 9%. Luxury communities including Palm Jumeirah and Jumeirah Golf Estates remain attractive to high-net-worth buyers, with returns approaching 7.5% in some segments.

With strong demand, stable regulation and global investor confidence, Dubai is expected to remain one of the world’s leading real estate markets in 2026.