How to get mortgage for overseas property as an American
Learn all about different ways to get an overseas property mortgage as an American and gain unique insights to prepare yourself for the whole process.
Top rental yields in Dubai 2025
Dubai's real estate market is booming right now, making it an attractive destination for American property investors. But before you jump in, it's essential to understand what rental yields you can expect.
Rental yield shows you how much annual income your property can generate compared to its value. Essentially, it's your return on investment from rent alone.
As of 2025, Dubai's rental yield is 6.31%.¹ However, location and property type make a huge difference in what you can earn. Here's everything you need to know.
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What is rental yield & why is it important?
Rental yield is the percentage of annual rental income you earn compared to your property's value. It's one of the key metrics that helps you evaluate whether a property will generate good returns.
There are 2 types of rental yield:
- Gross rental yield helps you compare different properties at a glance, but it doesn't factor in the costs of owning the property
- Net rental yield gives you a more realistic picture because it subtracts all your expenses, such as property management fees, maintenance, insurance, and other operating costs
Be sure to look at both numbers, as they serve different purposes. Gross rental yield helps you quickly identify which properties are going to be the most profitable. Net rental yield gives you an estimate of what you'll pocket.
That said, rental yield isn't the only metric you should consider. If you expect the property to appreciate a lot, it can still be a good long-term investment even if it doesn't generate high rental yields. So, look at the whole picture.
Is buying rental property in Dubai a good investment?
Yes, Dubai can be a strong investment choice for American buyers.
It has established itself as a global hub with a stable government and rich infrastructure. The city attracts residents and businesses from all over the world, so there's a consistent demand for rental properties.
| In Q1 2025, Dubai saw an impressive 22.4% year-on-year increase in residential sales. Apartments made up 76% of all transactions, but townhouses and villas are gaining ground, too.² |
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You also don't need to pay any taxes on your rental income in Dubai, which is a big advantage for investors.³
However, if you're planning on still living in the US, managing a property from thousands of miles away can be challenging. You'll likely need to hire a reliable property management company to handle day-to-day operations and maintenance, which will lower your net rental yield.
Locations with the highest rental yield in Dubai
Downtown
| Property type | Rental yield¹ |
|---|---|
| Studio | 8.42% |
| 1-bedroom | 5.83% |
| 2-bedroom | 5.17% |
| 3-bedroom | 5.23% |
| 4+Bedroom | 5.22% |
| Average rental yield | 5.97% |
Downtown Dubai delivers solid rental yields, especially for studio apartments, which can generate over 8% returns. The area's central location near Burj Khalifa and Dubai Mall attracts both tourists and professionals, so the demand is consistently high.
Palm Jumeirah
| Property type | Rental yield¹ |
|---|---|
| Studio | 8.71% |
| 1-bedroom | 4.75% |
| 2-bedroom | 3.97% |
| 3-bedroom | 3.17% |
| 4+Bedroom | 1.30% |
| Average rental yield | 4.38% |
In Palm Jumeirah, similar to the rest of Dubai, smaller apartments generate much higher yields than luxury 4+ bedroom properties.
Studios deliver nearly 9% returns, making them attractive for investors who are focused on rental income. At the same time, larger properties may offer better long-term appreciation, so don’t discount them quickly.
Dubai Marina
| Property type | Rental yield¹ |
|---|---|
| Studio | 5.23% |
| 1-bedroom | 6.11% |
| 2-bedroom | 5.76% |
| 3-bedroom | 5.56% |
| 4+Bedroom | 4.68% |
| Average rental yield | 5.47% |
Dubai Marina has consistent yields across different property sizes, with 1-bedroom apartments leading the pack at just over 6%. The yields here are more balanced compared to other areas, so it could be a good location if you want to invest in a larger property.
The waterfront location and many dining and entertainment options make Dubai Marina popular with expat professionals and families.
Business Bay
| Property type | Rental yield¹ |
|---|---|
| Studio | 6.96% |
| 1-bedroom | 6.28% |
| 2-bedroom | 5.67% |
| 3-bedroom | 4.95% |
| Average rental yield | 5.95% |
Studios and 1-bedroom apartments both deliver yields above 6% in Dubai's Business Bay. The area's central location and growing business district make it attractive to professionals working in downtown Dubai or DIFC.
JLT (Jumeirah Lake Towers)
| Property type | Rental yield¹ |
|---|---|
| Studio | 8.13% |
| 1-bedroom | 6.33% |
| 2-bedroom | 5.42% |
| 3-bedroom | 5.95% |
| Average rental yield | 6.46% |
Studios in JLT can bring you over 8% returns. This location has modern amenities and is close to Dubai Marina and Media City. It's a cluster of residential towers, so there's a sense of community, which appeals to young professionals and families.
JVC (Jumeirah Village Circle)
| Property type | Rental yield¹ |
|---|---|
| Studio | 7.94% |
| 1-bedroom | 7.11% |
| 2-bedroom | 7.04% |
| 3-bedroom | 7.12% |
| Average rental yield | 7.30% |
JVC delivers excellent rental yields across all property types, with most units generating over 7% returns. It's a family-friendly community with parks and schools, so you’ll have an easier time finding long-term tenants if that's your goal.
Arjan
| Property type | Rental yield¹ |
|---|---|
| Studio | 8.20% |
| 1-bedroom | 6.96% |
| 2-bedroom | 7.06% |
| Average rental yield | 7.41% |
Arjan is an emerging area in Dubai with good access to major highways and a relaxed, residential atmosphere. The studios deliver the highest yields, approaching 8.5% returns.
Al Furjan
| Property type | Rental yield¹ |
|---|---|
| Studio | 8.75% |
| 1-bedroom | 7.02% |
| 2-bedroom | 6.86% |
| Average rental yield | 7.54% |
Al Furjan is a well-planned community with strong infrastructure that attracts families and professionals. Studios and 1-bedroom apartments generate the highest yields, 8.75% and 7.02% respectively.
What is considered a good rental yield in Dubai?
A good rental yield in Dubai typically ranges from 6% to 8%, but it can sometimes even get close to 9%.¹
Here's the average rental yield in Dubai that you can generally expect for different property types across the city's neighborhoods.
| Property type | Average rental yield¹ |
|---|---|
| Studio | 8.25% |
| 1-bedroom | 6.92% |
| 2-bedroom | 6.88% |
| 3-bedroom | 6.10% |
| 4+Bedroom | 3.38% |
| Average rental yield | 6.31% |
Studio apartments will likely bring you the highest rental yields. 1 and 2-bedroom apartments also perform well, typically generating yields between 6% and 7%. Larger properties tend to have lower yields, but they may appreciate better over time.
Taxes on rental income in Dubai
One of the biggest advantages of buying a property in Dubai is that there is no rental income tax. Your rental earnings are completely tax-free.³
However, you’ll need to pay some upfront and ongoing costs:
- Property registration fees: Typically 4% of the property's value, paid during the purchase transaction³
- Annual maintenance fees: Property owners pay these to maintain common areas in residential or commercial buildings
As a US citizen or permanent resident, you'll still have to report and potentially pay taxes on your Dubai rental income to the IRS. The US taxes its citizens and permanent residents on their worldwide income.
Dubai has impressive rental yields, with an average sitting at 6.31% in 2025.¹ This is higher than in many developed markets worldwide. Plus, there are no taxes on rental income.³ All of this makes Dubai an attractive option for American property investors.
However, one cost that many investors underestimate is transferring money to purchase property in Dubai. Banks often charge hefty fees and poor exchange rates that can cost you thousands of dollars on a large property purchase.
With Wise, you can send secure and trackable large amount transfers to 140+ countries worldwide with transparent fees and the fair mid-market exchange rate.
Have a look at the main benefits for using Wise to send large transfers:
- Dedicated support for large transfers
- Fast and easy setup with no physical paperwork
- Upfront, transparent fees
- Fully trackable transfers
- Fast transfer times
- Two-factor authentication and real-time notifications
Sources
- Global Property Guide - United Arab Emirates
- Engel & Volkers - Residential Market Report
- Taxes for Expats - United Arab Emirates Taxes
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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