Common Myths About Real Estate in the UAE

The UAE’s property market is buzzing in 2025.

Dubai and Abu Dhabi are setting records. New projects are launching every month. And yet, certain myths won’t go away. Some of these misconceptions are old. Others have evolved with the market.

But they all share one thing in common: they stop people from making informed decisions. Let’s break them down, myth by myth, backed with the latest data.

Myth 1: Only the Rich Can Buy Property in the UAE

Reality: Affordable homes exist in areas, making ownership accessible for first-time buyers.

Apartments in emerging Dubai areas like Jumeirah Village Circle (JVC) and Dubai South start at AED 1,100–1,400 per square foot. That means a 450–500 square feet studio can be purchased for AED 495,000 to 700,000.

Developers have shifted from purely luxury projects to a mix that includes affordable and mid-range units. In Q1 2025, over 33,000 apartments were sold, surpassing villas, driven by younger expatriates seeking affordability.

For residents, the minimum down payment is 20% for properties under AED 5 million. For non-residents, it can be up to 40% while UAE nationals enjoy a lower rate of 15%.

Myth 2: Renting Is Always Cheaper Than Buying

Reality: In 2025, renting is not always the cheaper choice in many UAE cities, especially Dubai.

In top locations, property owners can earn 6% to 8% rental returns each year. This often covers running costs and can even bring in extra income. Rent increases have slowed to 7% a year, while property prices jumped 14% in Q2 2025. This means buying can grow your wealth faster than renting.

When you buy, your payments go toward building equity. Over time, this gives you real value and protects you from sudden rent hikes. Government programs like the Golden Visa and easier buying procedures make ownership even more attractive, especially for foreigners and expats.

Myth 3: Foreigners Cannot Own Property in the UAE

Reality: Expats can buy freehold homes in multiple emirates with long-term rights.

Today, foreigners can own freehold property in designated areas of Dubai, Abu Dhabi, Sharjah, and other emirates. In Abu Dhabi, expats enjoy 99-year freehold rights in certain zones and can own both residential and commercial properties.

Other options include Musataha and usufruct agreements, which allow for long-term leases and development rights. The UAE’s ownership framework today is among the most open in the region.

Myth 4: Buying Means Guaranteed Quick Profits

Reality: Returns depend on location, property type, and timing.

Overall, Dubai property prices rose 12% year-on-year in early 2025 and are up 24.7% since May 2024. But some areas grow more slowly—Mudon villas saw just 8.5% over the same period.

Dubai Sports City is seeing steady 5 to 7% annualized growth in 2025, not triple-digit spikes. Profit depends on location, property type, and timing, not every investment delivers instant returns.

Myth 5: The Market Is Always Booming or in a “Bubble”

Reality: The market runs in healthy cycles with growth driven by demand.

Dubai saw 125,538 property deals in the first half of 2025. They were worth AED 431 billion ($117 billion). That’s 25% more than the same time last year. It’s a record, but the surge will not last forever.

The average sale price for apartments sits between AED 1,100–1,400 per square foot, with prime zones like Downtown and Palm Jumeirah commanding more, and emerging areas less.

After dips in 2024, the market rebounded in 2025 under stricter lending and development rules, which helped avoid the speculative bubbles of the past.

Myth 6: Massive Capital Is Needed to Invest

Reality: Buyers can enter the market with modest budgets thanks to flexible payment options.

Apartments start at AED 495,000–700,000. Minimum down payments are 20% for expats, 40% for non-residents, and 15% for UAE nationals.

Off-plan projects with extended payment schedules and co-investment models make buying possible for a wider pool of buyers. The UAE market isn’t only for high-net-worth investors anymore.

Myth 7: Off-Plan Is Always Risky

Reality: Today’s off-plan sector is highly regulated.

Developers must register projects with the Dubai Land Department (DLD) and RERA. Buyer funds go into escrow accounts and are released only when construction milestones are verified.

While minor delays and design tweaks can happen, the major risks, like developer collapse, are now rare when purchasing through regulated channels.

Myth 8: Only Luxury Properties Have Strong ROI

Reality: Some of the highest yields are in mid-market areas.

In 2025, Dubai Investments Park tops the charts at 9.44% rental yield. Discovery Gardens (7.92%), Dubai Sports City (8.3%), and JVC (7.82%) also perform strongly.

Dubai’s apartment yields average 6.31% to 7.3%, with both luxury and affordable units generating solid returns. Abu Dhabi prices rose 17.3% year-on-year in Q2 2025, with villas outperforming apartments. In 2024, Abu Dhabi rents jumped 20% and sale prices by 11%.

Myth 9: Foreign Ownership Is Complicated

Reality: Buying is far simpler now than a decade ago.

Most transactions are handled by licensed agents, with paperwork and payments digitized. Authorities monitor project progress, ensuring compliance.

Foreign buyers can secure full ownership in designated zones and often qualify for long-term residency, including the 10-year Golden Visa, through qualifying investments.

2025 Market Snapshot

Let’s explore how UAE real estate is shaping up this year, from record transactions and surging prices to standout rental yields and remarkable growth in both Dubai and Abu Dhabi.

The UAE Property Market in 2025–26

Let's have a look at what the next 18 months will be like:

• Continued demand in mid-market communities as younger professionals look for affordable entry points.
• More government incentives for foreign investors, including expanded visa options.
• Greater integration of technology, from AI-driven property searches to blockchain-based transaction records.
• Sustainable development trends are gaining traction, with green-certified buildings attracting both buyers and tenants.

Stop Letting Myths Hold Back Your Property Goals with 10xM

Still think only the rich can buy in the UAE? Or that renting is always the smarter choice? The truth is, today’s market is full of opportunities from affordable entry points to high-yield mid-market communities, but only if you know the facts.

At 10xM, we help buyers, investors, and expats cut through the noise. Our experts break down the numbers, guide you through the rules, and show you where the real opportunities are so you can make confident and profitable decisions.

Book your free consultation today and start turning UAE property opportunities into lasting wealth.