If you are thinking about long-term rental investment in Dubai, you are in the right city.
Dubai consistently ranks among the most profitable rental markets in the world. Recent reports show gross rental yields averaging around 8 to 15 per cent in many residential zones, compared to 2 to 4 per cent in cities like London or 3 to 5 per cent in New York. On top of that, there is no property tax, no personal income tax, and no capital gains tax on real estate for individuals, which means more of the return stays with you.
But not every property performs the same. Some units stay occupied year after year, while others struggle with vacancy or weak rent. The difference usually comes down to a clear set of features that matter to long-term tenants and to serious investors.
Let us walk through those features in a simple, question-first way.
Which type of property is best for investment in Dubai?
For a long-term rental investment in Dubai, the most reliable performers tend to be:
- Mid-sized apartments in well-planned communities
- Located in areas with strong resident demand rather than purely tourist demand
- Priced in a way that keeps yields healthy relative to service charges
Data from multiple market reports shows that affordable and mid-market zones in Dubai can deliver gross yields between 7 and 11 per cent, often outperforming ultra luxury areas where prices are high but rents have a ceiling.
High rental yields
For long-term investors, high rental yields are the starting filter. They tell you how hard each dirham is working.
- Studios and one-bedroom apartments in communities like JVC, Al Furjan, and Dubai Silicon Oasis often achieve stronger percentage yields compared to large villas, because entry prices are lower while demand from young professionals and small families is consistent.
Look at both gross and net yield. Factor in service charges and a realistic vacancy.
A property that looks attractive on launch brochures but nets a low yield after costs will not support a long horizon long-term rental investment in Dubai.
High ROI
When investors talk about High ROI, they usually mean a mix of rental income and capital growth. In Dubai, average returns of 6 to 8 per cent on apartments are common in the better-performing communities, which is still significantly higher than many mature global markets.
What matters is stability. A slightly lower yield in a community with low churn and quality tenants can be more valuable than a high headline yield in a volatile micro market.
Property appreciation
The second leg of the return is Property appreciation. Dubai is still expanding, with the city’s population crossing 4 million residents and growing more than 5 per cent year after year in recent data.
Properties in:
- Well-connected master communities
- With the upcoming metro or transport links
- Backed by serious real estate developers
tend to see healthier appreciation across a 7 to 10 year window.
For example, Jumeirah Village Circle, where Tranquil Developers is active, benefits from central positioning, upcoming Blue Line connectivity, and strong end-user demand, which all support both yield and long-term price growth.
What kind of property makes the best investment?
Once you know the broad type and community, the question becomes: what kind of individual unit will actually perform?
The best kind of property for a long-term rental investment in Dubai is usually:
- Easy to rent to a broad tenant profile
- Efficiently sized rather than oversized
- Located in a building with good management and amenities that people genuinely use
Advanced Infrastructure
Start by looking at the Advanced Infrastructure around the property:
- Road access to key work hubs such as Business Bay, DIFC, Media City or Internet City
- Reliable public transport where available
- Community roads, parking, and pedestrian access that feel safe and practical
Dubai continues to invest heavily in transport and public realm, from metro expansion to smart bus shelters and airport upgrades, which supports renters' confidence in well-located communities.
Properties that plug into this infrastructure naturally stay attractive to long-term tenants.
Strategic location
A Strategic location is more than just a famous postcode. For long-term renters, the checklist usually looks like this:
- Commute time to office hubs
- Distance to schools, clinics, supermarkets, and parks
- Noise levels and traffic around the building
Many of Tranquil’s projects, for instance, in JVC, are chosen for exactly this balance: central enough to stay connected, calm enough to feel residential.
Growing population
Dubai’s growing population is a core reason rental demand remains strong. Recent figures show the city adding over 200,000 residents in a single year, with the wider UAE crossing 11 million people.
Long term investors should position themselves in communities that directly benefit from this rise: areas with new schools, community malls, and lifestyle infrastructure, rather than only tourist attractions.
Thriving tourism industry
Even if you are not doing holiday homes, a thriving tourism industry supports your assets.
- It keeps Dubai visible as a global city
- It brings in new residents who often start as visitors
- It supports hospitality, retail, and business, which translates into jobs
Dubai welcomed more than 18.7 million international visitors in 2024 and close to 10 million in the first half of 2025 alone, which keeps demand for rental housing healthy across the city.
Is Rental property a good investment in Dubai?
Short answer: yes, if you choose carefully and think long-term.
Average rental yields in Dubai outperform many global cities, and the fiscal environment is very friendly to investors.
No personal income tax
A major advantage is no personal income tax. The UAE currently does not levy tax on salaries, rental income, or capital gains for individuals.
That means the rent you earn from a long-term rental investment in Dubai is not eroded by annual income tax, which significantly boosts your net returns compared with many other cities.
Golden Visa opportunities
Dubai’s Golden Visa opportunities also support the investment story. Long-term residency options for investors, entrepreneurs, and professionals have:
- Increased transaction volumes
- Encouraged residents to think of Dubai as a long-term home, not a short stop
- Supported demand for both ownership and rental housing
For landlords, this means a wider pool of stable tenants who plan to stay in the city and value consistent, well-managed housing.
What makes a property good for rent
When you zoom into a single unit, certain features repeatedly show up in properties that stay occupied and rent well.
A property is usually good for rent when it is:
- Easy to live in, not just beautiful in photos
- Supported by reliable building management
- Priced correctly relative to its community
High rental yields in practice
A unit that achieves High rental yields on paper but suffers frequent vacancy is not truly performing. Good rental properties:
- Hit a yield that is competitive for their community
- Attract repeat tenants or long-stay families
- Have realistic market-aligned rents, not inflated asking prices
Property appreciation plus cash flow
The sweet spot is when property appreciation and rental cash flow move together. This is often the case in emerging but well-planned communities where:
- Infrastructure is improving year by year
- Quality developers, like Tranquil, are building with long-term residents in mind
- Prices are still accessible compared to prime waterfront zones
How does Tranquil Developers support long-term rental investment in Dubai
For many investors, the developer behind the project is just as important as the location. Tranquil Developers positions itself as a boutique, detail-driven player that builds for calm, everyday living and long-term value.
Here is how that supports your long-term rental investment in Dubai:
Location with intent
Tranquil focuses on prime, livable zones such as Jumeirah Village Circle, where rental demand is driven by real residents, not just seasonal visitors. JVC combines central access with a neighbourhood feel, which works well for families and professionals looking for multi-year leases.
Design that renters actually use
Layouts are planned for real life: good natural light, practical storage, efficient circulation, and wellness-focused amenities. Features like rooftop gyms, green pockets, and tranquil common areas make it easier to attract and retain quality tenants.
Quality-driven execution
Tranquil’s brand promise, Built with Thought, shows up in material choices, construction oversight, and finishing. Better build quality usually means fewer maintenance issues, fewer complaints, and more stable occupancy across the life of the asset.
Boutique scale and management
Rather than building huge, anonymous clusters, Tranquil tends to develop curated communities where building management and resident experience can be handled with care. For an investor, that translates into better preservation of the property and a more predictable tenant base.
If you are looking at JVC or similar communities as part of your strategy, working with a developer like Tranquil can give you a blend of yield, livability, and long-term resilience that suits serious rental investors.
FAQs on long-term rental investment in Dubai
1. Is long-term rental investment in Dubai still attractive in 2025?
Yes. Current reports indicate average apartment yields that are higher than many Western markets, with no property, income, or capital gains tax for individual owners.
2. Which type of property is best for investment in Dubai for long-term rent?
Mid-sized apartments in well-connected communities such as JVC, Al Furjan, and Dubai Silicon Oasis tend to balance entry price, rentability, and ongoing demand, which is ideal for long-term rental investment in Dubai.
3. What kind of property makes the best investment for stable tenants?
Look for efficient layouts, good natural light, quality finishing, reliable building services, and community amenities such as parks, gyms, and retail. These features make tenants stay longer and reduce churn.
4. Is rental property a good investment in Dubai if I am using a mortgage?
It can be. Many investors use long-term rental income to cover a significant part of their mortgage, especially in communities with solid yields and realistic service charges. Lenders also like predictable annual leases.
5. What makes a property good for rent from a tenant’s point of view?
Simple things: a quiet yet connected location, safe building, responsive maintenance, decent storage, parking, and transparent costs. If you would be happy to live there yourself, that is usually a good sign.
6. How does a developer like Tranquil support long-term rental investment in Dubai?
Tranquil Developers focuses on well-located projects in JVC with thoughtful planning, wellness-centric amenities, and quality-driven construction. That combination helps investors attract stable tenants and hold assets confidently through different market cycles.
Disclaimer
All statistics, yields, population figures, and tax references in this article are based on publicly available data and market reports available at the time of writing. Actual performance can vary by project, community, financing structure, and market conditions. Investors should seek independent financial and legal advice before making any purchase decision.
Author: Dr. Sharad Nair
Co - Founder & Chairman, Tranquil Developers
