What to Consider When Choosing a Property to Invest in Dubai in 2025

What to Consider When Choosing a Property to Invest in Dubai in 2025

With Dubai’s real estate market booming like never before, many people are wondering how to invest wisely. We asked Oleksandr Kirichenko, Head of Business Development at the video platform Dubadu, to answer some common questions from our users about investing in Dubai property.

When you choose a ready-to-move-in property you can visit, the process is fairly straightforward. But is it possible to buy property while it’s still under construction?

Yes, absolutely. In Dubai, this is called buying “off-plan” — purchasing residential or commercial real estate during the construction phase.

Isn’t that risky?

In the past, there were indeed some failed projects that negatively impacted the market. These incidents damaged the reputation of certain developers as well as the Emirates as an investment destination overall.

However, today buyers are well protected. Since 2007, Dubai has required the use of escrow accounts — special bank accounts that secure buyer funds during the transaction. Developers cannot begin construction without setting up such an account.

How does this system protect investors?

Under this system, buyers’ payments do not go directly to the developer or seller. Instead, funds are held securely in the escrow account and remain blocked until the developer completes specific construction milestones or fulfills all contractual obligations.

This means the developer cannot use the money until they meet their commitments. The process is regulated by the Dubai Land Department (DLD).

Thanks to this mechanism, the risk of fraud is significantly reduced, making property purchases more transparent and secure for both local and foreign investors.

How can you verify if a developer has an escrow account?

Simply ask the developer. Usually, reputable developers publish escrow account information on their official websites. This is public information that you should look for when selecting a property.

There’s a saying that you can buy property in Dubai on an installment plan, rent it out once it’s ready, and use the rental income to cover payments. So you start earning while still paying. Is that true?

Yes, this scheme is possible, though it is less common now than before. It was especially popular during the pandemic when keeping the real estate market active was essential.

You can still find such options. The first step is to look for properties with a payment plan. Dubai developers often offer flexible payment schedules — for example, an initial payment of 10–20%, followed by installments spread over several years (sometimes 5–7 years).

After construction completes, you typically pay a larger portion (around 50–60%), receive the keys, and can start using the property.

Once you have the keys, you can rent out the property right away, either long-term or short-term (for example, via Airbnb). The rental income can help cover your monthly installment payments.

Meanwhile, you continue paying off the remaining balance according to the payment plan.

This approach allows the property to essentially “pay for itself” and enables investors to enter the market for higher-value or more liquid properties without paying the full amount upfront.

What should investors watch out for with this option?

You should carefully review the contract with the developer, especially the payment percentage required to receive the keys. Not all projects allow immediate rental after handover.

This model is especially appealing to foreign investors because it combines ownership with income generation, reducing the initial financial burden.

Also, if you plan to buy property for rental income, consider additional costs beyond the purchase price — such as the 4% Dubai Land Department fee, agency commissions for renting out the property, and annual maintenance fees. These all affect your net profitability.

What kind of rental yields can investors realistically expect right now?

Rental yields of 7–8%, and sometimes even up to 10% in US dollars, are achievable. The most common range is 5–7%, but higher returns are possible depending on the initial purchase price.

For example, buying an off-plan property below market value usually results in higher yields.

Is it true that foreigners cannot buy property in every part of Dubai?

Yes, that’s correct. Since 2002, foreigners have been allowed to purchase property in Dubai. However, some areas remain off-limits for purchase and only allow rentals.

Typically, coastal plots fall into this category — only UAE nationals or local residents can buy property there.

That said, if a company owns the property and has shareholders who are citizens of Dubai or the UAE, such companies may purchase properties in these restricted areas.

Dubai is actively expanding freehold zones where foreigners can buy, so it’s important to stay informed and target projects that offer the best potential for future returns.

What if I don’t want to buy off-plan but want to purchase a ready property remotely — is that possible?

Yes, it is. And this is where our video platform Dubadu can help. We offer a wide selection of residential and commercial properties that you can explore remotely.

You can watch detailed videos of real properties, select those you like, and then get in touch with an agency or realtor to complete the purchase.

Is it safe to choose a property through the platform?

Absolutely. We verify all listings and remove outdated ones. This means you can trust that you’ll see exactly what you get. Video tours provide a much clearer and more realistic impression than photos alone.

Currently, our platform features over 18,000 listings — plenty to choose from!

In summary, investing in Dubai today is a strong choice for those seeking stability and attractive income potential. Thanks to transparent regulations, investor protections, and flexible purchase terms, the market remains appealing to both new and experienced investors.

If you want to choose a property easily, with confidence and without unnecessary risks, Dubadu will be your reliable partner on your investment journey.