Dubai Tops Global Chart for Fastest Buy-to-Let Capital Returns: UBS Report 2025
Buy-to-let investors in Dubai are now seeing their capital returned faster than in any other major global city, according to the latest UBS Global Real Estate Bubble Report 2025.
Dubai’s Growth Story Continues
The report highlights that after a 50% price increase over the last five years, Dubai has moved higher on the UBS bubble index — a reflection of its strong growth rather than unsustainable speculation.
Despite this rapid appreciation, the city’s fundamentals remain robust. With the population growing by nearly 200,000 people each year, housing demand continues to outpace supply. Combined with global economic uncertainty elsewhere, Dubai’s real estate market is positioned for continued healthy capital returns over the next 5–10 years.
Affordability Still in Favour
Digging deeper into the report reveals compelling data points for investors:
- Median home prices in Dubai are just 7x the average skilled wage, significantly below most other global cities.
- Interest rates are gradually easing, improving borrowing capacity.
- A weaker US dollar is making Dubai property even more attractive for international buyers.
These affordability indicators point to a market that, despite strong performance, still offers value and accessibility for investors.
Dubai Leads the World in Capital Recovery Speed
One of the most striking findings in the UBS report is the comparison of how many years it takes for rental income to repay the cost of purchasing an apartment of equivalent size.
In this metric, Dubai ranks the lowest globally — meaning investors recover their initial capital faster here than anywhere else. The returns are even more compelling when leveraging smart financing options available through local banks.
Why Global Investors Are Choosing Dubai
Beyond the returns, Dubai’s low regulatory barriers and absence of stamp duty or capital gains tax make it an even more investor-friendly destination.
Compared to mature markets like the UK, where taxes and transaction costs erode profitability, Dubai offers a streamlined and tax-efficient investment environment.
Final Word
For investors seeking a blend of high rental yields, strong capital appreciation, and an internationally recognised real estate ecosystem, Dubai remains unmatched.
It’s no surprise that a growing number of UK and global investors are diversifying their portfolios into Dubai and the wider UAE.
If you’re an investor looking to understand how to maximise returns in Dubai’s property market, our advisory team can help you identify the best buy-to-let opportunities.
Get in touch or book a consultation to explore the city’s most promising projects.
