Buy a villa in Dubai – return on investment

Buy a villa in Dubai – return on investment

11.29.2023 (updated 11.29.2023)

  • AX Blog
  • Buy a villa in Dubai – return on investment | AX CAPITAL

The Dubai real estate market is famous not only for skyscrapers and luxury apartments but also for magnificent villas. They are very popular among renters, investors, and people looking for a new home. Next, we'll take a closer look at why they are so popular and how they can benefit investors.


Average cost of villas in Dubai

Prices for villas can vary greatly depending on the location in a particular area. The closer the property is to the tourist attractions, recreation and central areas of the city, the higher the cost per square meter will be. The price will also be affected by the number of bedrooms, extra rooms, and available amenities. The more premises, the higher the property costs, but the level of comfort will also be higher. The average price of a villa with the required number of amenities and 2-3 bedrooms is approximately $500,000. The following table shows prices for properties in the most popular areas.

AreaAverage price ($)Average price (AED)
Dubai Hills14,621,79553,700,004
Al Safa 2 2,599,2489,545,998
Dubai Marina1,904,3406,993,879
MBR City8,044,98229,546,000

The presence of additional amenities can significantly increase the value of the property. The reason is not only a higher level of comfort but also, as a rule, an increase in the area of the house and the surrounding area. Additional amenities include the following:

  • Maid's room
  • Guest rooms
  • Indoor pool
  • Personal gym
  • Garage for several cars
  • Personal garden and terrace
  • Attic

Return on Investment in Dubai villas

Compared to 2022, prices for villas have increased by 12%, while prices for apartments have risen only by 9%. In several particularly prestigious areas of the city, the price increase was more than 30%. In 2023, prices for luxury villas are projected to increase by another 13%. Depending on the area, the ROI for such facilities can range from 4% to 6%. Renting villas is very popular among tourists who want to relax in luxurious conditions. Young professionals also show interest in villas, but they give greater preference to long-term rentals of apartments and studios. In both options, they give the greatest preference to properties near business districts of the city.

The majority of transactions are concluded exclusively by individuals seeking permanent housing. Therefore, the possibility of a future resale of the villa will also be a good way to return the invested funds and generate income.

Luxury villa in Dubai with a private pool.
Premium villa in Dubai.

Advantages of buying a villa in Dubai

Buying property in Dubai has several advantages compared to other cities. For example, the absence of any purchase tax. Also, local developers and real estate agencies do not require the personal presence of the new owner to conclude a transaction. It will take several days to complete the purchase process.

As a rule, villas are built in large numbers in separate areas consisting exclusively of them. Also in such communities, special attention is paid to the level of infrastructure. Developers are trying to create convenient retail outlets and place premium amenities nearby such as golf courses, private beaches, and yacht clubs. All this attracts a large number of tourists and vacationers, guaranteeing a constant steady rental income. The stability of the local real estate market also guarantees the absence of major risks.

Due to its price, buying a villa will almost always guarantee you a residence permit in Dubai. We wrote more about the golden visa and obtaining UAE citizenship in this article.

Catalog of villas in Dubai

Villas are one of the most sought-after property types in Dubai. In total, you can count several dozen residential areas consisting exclusively of villas. Freehold zones will be of particular interest to investors. Foreigners can buy real estate there avoiding registration difficulties. The following communities are the most popular:

In these areas, you can find middle and premium-class real estate. Developed transport accessibility and an abundance of amenities arouse interest among potential buyers and tenants.

Buy a villa in Dubai

If you want to buy a villa in Dubai for rent, but cannot make a choice, contact the specialists of AX CAPITAL. Our agents will help you choose the property that suits your purposes. They will also provide all the necessary support during the transaction process.

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