If you are considering investing in real estate in Dubai, this is the perfect time. The city continues to attract investors from all over the world thanks to its high return on investment, its constant growth, and its favorable tax environment
In this article, I will tell you about my personal experience investing in Dubai, specifically in Jumeirah Village Circle (JVC), an area with great potential. We will also review the tax benefits, the profitability of rentals, and compare Dubai with other markets such as London and New York.
Why invest in real estate in Dubai in 2025
Dubai has consolidated its position as one of the most attractive real estate markets in the world. But what makes it so special for investors?
1. No income or capital gains taxes
Unlike other investment destinations, Dubai does not charge income tax or capital gains tax on real estate. This means that what you earn from your investment is completely yours.
2. High return on investment (ROI)
Dubai offers an average ROI of 5% to 9% per year, significantly higher than cities like London (3-5%) or New York (4-6%).
3. Flexible payment options
Many developers offer interest-free installment payment plans, allowing investors to enter the market without having to pay the entire property cost upfront.
4. Constantly growing market
With the arrival of Expo 2020 and the growth of tourism, Dubai has experienced a boom in property demand. Developing areas, such as JVC and Dubai South, are seeing an increase in prices and in short-term rental occupancy.
JVC: The hidden gem for real estate investors
When I started looking for properties in Dubai, I wanted something that offered high profitability and affordable prices, without sacrificing quality of life or rental demand.
After analyzing several areas, I decided to invest in Jumeirah Village Circle (JVC). Why?
- Strategic location: It is well connected to Downtown Dubai and other key areas.
- More affordable prices: You can find properties for $150,000 - $250,000 USD, much more accessible than in Downtown Dubai.
- High demand for short-term rentals: Many expats and tourists look for options away from the hustle and bustle of downtown.
- Sustained growth: The area is still developing, which means great potential for appreciation in the coming years.
My investment in JVC: Costs, profitability, and purchase process
A year ago, I purchased an apartment in JVC for $180,000 USD with a direct payment plan from the developer. I paid 25% upfront and the rest is financed over five years.
What surprised me the most was that the income generated by the rental covers much of the monthly installments. Currently, I earn between 5,000 and 7,500 dirhams per month (approximately $1,500 USD) in rents.
After deducting administration, utilities, and cooling costs (fundamental in Dubai), my net profit is around $1,000 USD per month.
This shows that investing in Dubai can be very profitable if you choose the right area and structure the purchase well.
Renting short or long term in Dubai? Comparison and benefits
If you are thinking of renting your property in Dubai, you have two main options: short-term rental (Airbnb, Booking, etc.) or long-term rental (an annual contract with a fixed tenant).
- Monthly profitability: Short-term rental usually generates higher income, up to 30% more than long-term rental. However, the income can vary depending on the season. On the other hand, long-term rental offers stability in payments, although the monthly profitability is usually lower.
- Occupancy: In the long term, occupancy is stable, since the tenant signs a contract for several months or years. In the short term, it depends on tourism demand and expats, although Dubai has a high occupancy rate in this segment.
- Maintenance: In short-term rental there is more tenant turnover, which implies greater maintenance, frequent cleaning, and reservation management. In long-term rental, maintenance costs are lower.
- Flexibility: Renting short term allows you to adjust prices according to demand, while in the long term the price remains fixed in the contract.
In my experience, short-term rental has been more profitable because it allows you to maximize income, especially in a city with as much activity as Dubai. However, if you prefer stability and less management, long-term rental may be a better option.
Tax benefits in Dubai: How to maximize your investment
One of the greatest advantages of investing in Dubai is its favorable tax system.
- 0% income tax: What you earn from your investment is 100% yours.
- 0% capital gains tax: If you sell the property for a profit, you pay no taxes.
- Low maintenance and community costs: These are lower than in other international cities.
Is Dubai better than London or New York for investing?
Comparing Dubai with other major cities, the difference is clear:
City Average price per m² Average ROI Income tax
Dubai $3,500 - $6,000 5% - 9% 0%
London $13,000 - $25,000 3% - 5% 20% - 45%
New York $10,000 - $20,000 4% - 6% 10% - 37%
Dubai continues to offer lower prices and higher profitability, making it a very attractive market for global investors.
How to invest in Dubai without being a resident and with cryptocurrencies
Another great advantage is that you do not need to be a resident to invest in Dubai.
In addition, some developers and platforms allow the purchase of properties with cryptocurrencies, which facilitates investment for those looking to diversify their digital assets.
Conclusion: My advice for new investors
After my experience investing in JVC, I can say that Dubai remains a market full of opportunities.
If you are thinking of investing here, my recommendation is:
✅ Analyze the growing areas (JVC, Dubai South, Dubai Hills).
✅ Take advantage of direct payment plans with developers.
✅ Consider short-term rentals to maximize income.
✅ Find out about purchasing with cryptocurrencies and financing.
If you need more information or have questions about the investment process, ask me. I am here to share my experience and help you make the best decision!
