Yields recovered from the lowest average in February 2021 due to COVID, and apart from that dip since 2019 yields have been for apartments from 8.65% in Jan 2019 to 7.31% in April 2025. Villa Townhouses peaked in September 2023 at 5.17% and are averaged across Dubai at 4.93%
Average ROI Globally
London 4.1% – New York 2-3% – Singapore 2-3% – Berlin 2.84% – Tokyo 4.5% – Sydney 2.87%
Top Tip for long term investment:
If you are looking for a long term investment or a potential retirement or passive income go for an apartment in MBRC which has had a stready ROI of 7.25-7.56% since March 2023 (long-term)
ROE?
Developer’s are releasing projects at a higher price ps.qft than previous, but the unparalleled payment plans remain to open real estate investing as an option. The price escalation is due to many reasons, more luxury projects, waterfront units, price of land and construction.
Top Tip
Look at off plan re sale, in many projects there is still a premium achievable.
Real Time Example:
Peninsula Two, Business Bay, currently close to 70% constructed.
A 2 bedroom property on the 23rd floor was initially sold for AED1,570,000 by Developer to the first buyer, the sale was registered in March 2022.
The initial buyer sold it for AED2,050,000 in October 2024 which gave a 30% premium and over a 100% ROE as the payment plan is 30% in the first 6 months (paid) and 70% on handover.
This could now be resold for AED2,360,000 (one recently sold for the same price on the 9th floor, same type) + making the 2nd buyer a 15% premium.
Once completed this price is expected to appreciate further.