Dubai Off-Plan: High Yields, Real Growth

The global property scene is shifting. In cities like London, Hong Kong and New York, affordability has slipped, yields have thinned out, and warning lights about bubbles are hard to ignore. Amid all that noise, one market keeps its shine: Dubai.

The UBS Global Real Estate Bubble Index 2025 places Dubai in the “elevated risk” zone with a score of 1.09. At first glance, that might make an investor pause. In practice, it signals a market that’s busy, highly sought-after and moving with pace. And when you look properly at the numbers, it becomes clear why Dubai’s off-plan segment stands out as one of the strongest opportunities anywhere.

High rental yields backed by real fundamentals
One statistic from the UBS Index jumps off the page: Dubai’s price-to-rent multiple sits at roughly 15 years. In simple terms, it would take about 15 years of rent to cover the purchase price. Set that alongside Zurich at 43 years, Milan at 27, or London at around 12 years but with far lower yields and much higher entry costs, and Dubai’s edge is obvious.

A lower multiple feeds straight into stronger rental yields. For investors who want income now and appreciation over time, that balance matters. Dubai marries comparatively accessible pricing with steady, genuine rental demand, so it works as a cash-flow play as well as a growth story.

Why off-plan properties outperform
Go off-plan and those advantages often get bigger. Developers in Dubai tend to offer flexible payment plans, with around 70 to 80 percent of the purchase price due after handover. That lets you secure a home at today’s price while spreading out cash commitments. With prices up roughly 11 percent over the past year and nearly 50 percent over five years, according to UBS, early entry into quality projects puts you in position to capture the lift during construction.

By handover, you’ve typically benefited from that value growth and can move straight into the rental market. Depending on location, yields of about 6 to 8 percent are common. When many prime global cities sit closer to 2 to 3 percent, Dubai’s proposition is hard to match.

Global capital flows are driving demand
This isn’t just a local story. Since 2020, Dubai’s population has grown by about 15 percent, fuelled by high-net-worth migration, international professionals and global investors. Pro-investor policies, clear regulation and first-class infrastructure have strengthened the city’s pull.

That steady inflow underpins the off-plan sector. New launches in prime spots, think waterfront addresses on Palm Jumeirah or master-planned communities like Dubai Hills, see demand routinely outpace supply. For investors, that translates into pricing power, resilient rentals and a more secure long-term outlook.

The strategic case for investors
Put it together and you have high yields, deep demand and worldwide appeal, reasons Dubai’s off-plan market ranks among the best real estate opportunities today. UBS may flag elevated risk, but seasoned investors recognise that as a sign of momentum, not a stop sign.

The difference is in the approach: pick reputable developers, focus on prime locations and use structured payment plans to maximise both income and appreciation.

In a world where many markets are offering lower returns and higher barriers to entry, Dubai remains the exception. It offers affordability, yield and growth in the same place, exactly what investors have been looking for.