The pros of investing in commercial property abroad: the global market

The real estate market in the UAE continues to demonstrate stable growth: according to CBRE, in 2024, the average cost of residential properties increased by 20.1% compared to the previous year. The main activity is driven by immigrants, investors, and tourists. The emirate offers a wide range of formats, and the types of real estate in Dubai allow for achieving strategically different goals — from quick resale to passive long-term income.

Brief guide for investors

The types of real estate in Dubai are diverse and cover all major investment goals — from stable income to capital growth. The market offers apartments, villas, townhouses, commercial, industrial-warehouse, and premium properties.

This variety allows investors to choose an option that fits their budget, timelines, and level of profitability. A successful strategy starts with understanding these differences — it is the foundation of a successful investment.

Apartments, Villas, and Townhouses

Residential real estate maintains its leadership in terms of transaction volume. Apartments account for up to 70% of all sales, with an average short-term rental yield reaching 7.8% annually. Formats range from studios in Jumeirah Village Circle to penthouses in Palm Jumeirah.

Townhouses in areas like Arabian Ranches or DAMAC Hills cater to stable demand among families. Villas in Dubai Hills Estate consistently rank in the top 5 in terms of inquiries. Here, the cost per square meter starts from $3,000.

Residential properties include:

• apartments — a flexible format with quick returns;
• villas — premium class for affluent tenants;
• townhouses — optimal balance of space and cost.

These options can easily be adapted for rental or ownership, which is particularly important for long-term property investments in Dubai.

Offices, Retail Spaces, Warehouses

Commercial real estate shows steady growth. In Downtown Dubai and Business Bay, demand for office spaces increased by 23% compared to the previous year. The average rental rate starts from $380 per m² per year.

Dubai areas for purchasing commercial properties:

• Business Bay — for offices and coworking spaces.
• Al Quoz — warehouses and logistics.
• Jumeirah Lake Towers — retail spaces for dining establishments.

Business properties in the UAE are geared towards a growing business audience due to the influx of startups and international companies. Buying property in Dubai for commercial purposes requires a clear strategy that takes into account not only profitability but also the level of local demand.

High Margin Properties

Industrial real estate in Dubai offers long-term stability. Key locations include Dubai Investment Park and Jebel Ali. Warehouses, manufacturing complexes, and logistics hubs. Average yield can reach up to 10% annually.

Types of residential properties include a limited number of such assets, which increases interest from institutional investors. These properties are purchased to be rented out to export-oriented companies. Owning such assets is an advantage when starting a business in the UAE.

Premium Class Locations

Elite real estate is concentrated in areas like Palm Jumeirah, Dubai Marina, and Emirates Hills. Villas with pools, panoramic windows, finishes from Armani and Versace. Prices start from $1.5 million per property. Primary buyers are investors from Europe and Asia.

Types of real estate in Dubai include residential complexes with hotel management, where yields can reach 6% even with a high entry threshold. Such properties are chosen not for quick returns but for capital investment with the prospect of liquidity growth.

Formats for the Tourist Audience

Seaside properties are among the most liquid formats. Apartments in Bluewaters, studios in Dubai Creek Harbour, or villas in La Mer consistently attract tourists. Rental rates range from $100 to $700 per day depending on the season.

Foreign investors actively utilize waterfront properties for short-term rentals through platforms like Airbnb. Yields can reach 8% when managed by a local operator. Special attention is given to areas with developed tourist infrastructure.

Key Parameters for Choosing a Format

Each type corresponds to a clear set of investment objectives. A rational choice of format requires a comparison of goals, budget, and expected profitability.

When choosing, it is important to consider:

1. Investment goal. For quick rental income — apartments. For capital growth — luxury residential properties. For a stable income stream — commercial properties.
2. Budget. Entry into a studio starts from $120,000. A villa in a good area starts from $1,000,000. Commercial property starts from $300,000.
3. Location. Dubai Marina, Downtown, JVC — for rentals. Business Bay — for business. Jebel Ali — for industrial needs.
4. Yield. Apartments — up to 8%. Commercial — 6–10%. Industrial — above 9% for long-term leases.
5. Legal status. Ownership — in freehold zones. Leasehold for 99 years, especially important for immigrants.
6. Current market. The UAE real estate market remains flexible, with the opportunity to exit a deal profitably with a sound strategy.

A comprehensive approach eliminates risks and simplifies decision-making. A clear understanding of the parameters allows for building a sustainable investment model.

Ownership or Rental

Most properties in Dubai are sold in freehold format, providing full ownership with the right to sell, gift, and inherit. Immigrants often choose this format to obtain residency. Leasehold is less common — for example, in some parts of Deira.

Business rentals require registering a company in the appropriate jurisdiction. For investors, ownership provides a strategic advantage in long-term planning.

New Developments and Secondary Market: Differences

The primary market offers a wide selection of layouts, modern construction technologies, and flexible payment schemes. New developments in areas like Dubai Creek Harbour, Arjan, and Sobha Hartland are gaining popularity among investors.

Secondary properties allow for quick rental income and a realistic assessment of the property. Such offers are more common in areas like Jumeirah Lakes Towers and The Greens. Dubai’s real estate offerings cover both segments, but the choice depends on the strategy — whether aiming for price appreciation or immediate rental income.

Types of Real Estate in Dubai: Conclusions

When choosing a property, factors like budget, goals, profitability, location, and ownership status are crucial. Different types of real estate in Dubai allow for implementing strategies — from quick profits to long-term growth. A smart approach starts with analyzing these factors.

Investing in property is always about choosing a better tomorrow. In Dubai’s investment-friendly neighbourhoods, the future is today, and choosing the right location means not only getting returns, but also ensuring the sustainability of your investment. This is a city where futuristic architecture meets thoughtful infrastructure and livability. Each neighbourhood here is a unique combination of opportunities and advantages that can either bring a stable income or turn an investment into a costly mistake.

Dubai’s neighbourhoods vary in terms of development, location, transport infrastructure, schools, shopping centres and cultural facilities. Geographical location determines how quickly property values will rise, what demand for rentals will develop and what prospects an investor will have.

Which neighbourhoods in Dubai are suitable for investment in 2024

In 2024, Dubai’s investment climate continues to change, offering new opportunities for those ready to invest in property. Choosing an area to invest in requires careful analysis of current and future trends. It is important to consider not only the value of properties, but also the prospects for infrastructure development, standard of living and price growth dynamics.

Dubai city centre

Downtown Dubai is the heart of the city, home to iconic landmarks such as the Burj Khalifa and Dubai Mall. It is an area with a high concentration of luxury properties and developed infrastructure. Investors choose Downtown Dubai due to stable rental demand and constant price growth. The average yield from renting apartments here is 5-7% per annum.

Dubai Marina

Dubai Marina is one of the most popular neighbourhoods for expats and tourists. It is home to modern high-rise buildings, waterfront promenades, restaurants and shops. This area of Dubai for investment is particularly attractive for those who plan to earn income from short-term rentals. The high tourist traffic provides a yield of 7-8%.

Palm Jumeirah

Palm Jumeirah is an artificial island that has become a symbol of luxury and innovation. Palm Jumeirah villas and apartments provide high returns due to the unique location and prestige of the area. The average cost of property here is higher than in other areas, but rental yields can reach 10% per annum.

Dubai’s most lucrative areas for property investment

There are several neighbourhoods in the city that show the highest yields and attract the attention of experienced investors.

Business Bay

Business Bay is a business district located near Downtown Dubai. Modern office buildings, hotels and residential complexes are being built here. Investors choose Business Bay due to its strategic location and high rental demand among business people. The average rental yield is 6-7%.

Jumeirah Village Circle (JVC)

JVC is a rapidly developing part of the city, which attracts investors with affordable prices for square metres and high growth potential. Modern residential complexes, schools, shops and parks are being built in this neighbourhood. The average rental yield in JVC is 7-8%, making it one of the most profitable in Dubai

Deira

Deira is an old neighbourhood that is experiencing a second birth thanks to extensive redevelopment. Investors can buy property here at relatively low prices and expect high rental yields. The average return is 8-9%, and infrastructure development promises further price growth.

Investments in new buildings: advantages and prospects

Modern construction technologies, guarantees from developers and a high level of quality make new buildings an ideal choice for those who plan long-term investments.

Benefits:

1. Modern technologies: the use of the latest materials and technologies ensures high energy efficiency and durability of buildings.
2. Quality guarantees: property developers offer warranty services, which reduces risks for investors.
3. Flexible payment terms: the purchase of new buildings is often accompanied by instalments or preferential financing terms.

Promising Neighbourhoods:

1. Dubai Creek Harbour: a waterfront neighbourhood where modern residential developments overlooking the bay are being built.
2. Meydan: a developing part of the city with luxury villas and apartments.
3. Arabian Ranches 3: a new phase of the popular project with townhouses and villas.

Dubai investment neighbourhoods suitable for Russians

Dubai has long been an attractive destination for investors from Russia due to its high standard of living, favourable tax regime and developed infrastructure. Many areas of the city are particularly suitable for Russian-speaking investors due to the presence of Russian schools, communities and familiar levels of comfort.

Jumeirah Beach Residence (JBR)

JBR is one of the most popular neighbourhoods for Russian-speaking expats. There are modern residential complexes, waterfront promenades with restaurants, shops and entertainment venues. Due to its proximity to the sea and developed infrastructure, JBR is ideal for long-term living and property investment.

Dubai Marina

Dubai Marina attracts investors from Russia with its dynamism and high level of comfort. The area is known for its skyscrapers, yacht clubs and shopping centres. Russian schools and cultural centres are also located here, which makes the area particularly convenient for families with children.

Palm Jumeirah

Palm Jumeirah is a symbol of luxury and innovation, which is also popular with investors from Russia. Villas and apartments on this artificial island provide a high level of comfort and prestige. Due to its unique location and high demand for rentals, yields can reach 10% per annum.

Conclusion

Investing in property in Dubai’s up-and-coming neighbourhoods is a reliable way to grow your capital, create passive income and secure your future. The city of the future offers a wide range of locations, each with unique advantages. From luxury villas in Palm Jumeirah to vibrant apartments in Downtown Dubai, every investor can find the perfect property for their goals.