Purchasing a home in Dubai and selling it two years later with up to a 30% profit is a growing trend, according to leading Italian real estate agencies operating in the UAE. Italians now rank among the top five investors, alongside the Chinese, Germans, French, and British. This surge in interest is fueled by numerous urban development projects that are continually transforming Dubai’s skyline, making it an increasingly cosmopolitan and futuristic city that attracts investors from around the globe.
Real Estate Transactions in Dubai in 2024
In just three months, over 33,600 property sales were completed—an increase of 30% compared to the same period in 2022—with a total value exceeding €285 billion. This is more than double the amount from the previous year and represents the highest figure ever recorded. The most sought-after areas include the Marina, Downtown Dubai, Business Bay, Palm Jumeirah, JVC, and Jumeirah Lake Towers. Investors are seeing potential profits of up to 30% within two years.
How Much Can You Earn by Investing in Dubai Property?
Investing in an under-construction property and selling it at a higher price once completed is becoming an increasingly popular strategy in Dubai’s real estate market. A studio apartment of approximately 43 square meters in a residential or tourist area is valued at around €200,000. Since this is a property still under construction, the typical buyer pays 50% of the total cost within the first two years, with the remaining balance due upon completion. As the project nears completion, the brand-new, fully furnished apartment can be resold for up to 30% more than the initial purchase price. For instance, a buyer who paid €100,000 for a pre-construction apartment could resell it for €230,000 two years later, earning a profit of €30,000 (30%) on the initial investment.”
Rentals in Dubai
This type of transaction currently accounts for approximately 80% of the deals, the remaining 20% involves apartments that are rented out once completed, either through long-term contracts (which typically last one year in Dubai, unlike in Italy) or short-term rentals for tourists.
Given that the annual rent for a similar apartment is around €25,000, and the daily rent is €200, the buyer can achieve an estimated return of 10% to 20% per year, before property management fees are deducted.
According to the Mo’asher report, the official sales and rental price index developed by the Dubai Land Department in collaboration with Property Finder, 48,496 rental contracts were registered in July 2023. Over 70% were residential, while the remainder were for commercial use, with 50.54% being new contracts. Among these, 91.88% were annual contracts, while 8.12% were for shorter terms.
Is Investing in Dubai Real Estate Safe?
One of the most attractive factors is the security of investing in Dubai real estate. In any sales transaction, the UAE government acts as a guarantor, ensuring the deal’s security in case of developer bankruptcy. Additionally, buyers deposit funds directly into dedicated accounts managed by the developer, who cannot access these funds until the project is completed and delivered.
Profile of the Italian Investor in Dubai
The typical Italian investor is aged 30 to 50, a professional living in Campania, Lazio, Lombardy, or Veneto, and is looking for zero-risk investments for themselves or their children. This is the profile of the Italian buyer who turns to Italian real estate agencies for assistance in purchasing an apartment in Dubai. Generally, potential buyers contact the Italian offices of the group, which work closely with the local office to identify the best investment opportunities. Remarkably, 40% of properties are sold before the buyer even visits Dubai.
