Dubai real estate is presented as a long-term portfolio asset that combines tax advantages, residency benefits, property yield, capital growth, and a broader macro story around the UAE. The example discussed is the sale of two Dubai properties, including one apartment in Bonington Tower in JLT, with a detailed breakdown of return, timing, and why the decision to sell was partly right and partly regretted.
Dubai as part of a global portfolio
Dubai property is described as one component of a wider global portfolio, not an emotional purchase.
The main argument is that Dubai offers four connected advantages:
- Tax benefits
- Residency benefits through the golden visa
- Real estate exposure
- A larger macro trend around Dubai’s growth and attractiveness
The UAE is described as still being on an upward curve, supported by its popularity as a residency destination and by continuing inflows of wealthy and talented people from other countries.
The UAE golden visa is described as one of the most popular residency programs in history. The broader point is that as other countries push out high-net-worth individuals, entrepreneurs, and skilled people through taxes or regulation, Dubai continues to attract them.
Even after selling two properties, the speaker still holds a significant amount of Dubai property and remains interested in future Dubai opportunities.
Why emotional purchases are risky
The Bonington Tower apartment in JLT was the first property the speaker bought in the UAE.
That made it partly emotional, which is presented as a mistake from an investment perspective. The practical rule given is that property should be evaluated based on numbers, market timing, and portfolio strategy, not attachment.
The sale is still described as financially successful, but the emotional connection made the decision harder.
Bonington Tower purchase and sale numbers
The apartment was purchased for 854,430 dirhams.
The original purchase price per square foot was 1,139 dirhams.
At sale, including prorated rent, the achieved price was 1,786 dirhams per square foot.
At the time of purchase, Dubai Land Department fees were still 2%. Later, around 2012, this increased to 4%. The lower transaction cost at purchase helped improve the overall return.
The net capital gain was 428,481 dirhams.
That represented a net capital return of 48% on the original purchase price.
Total net rental income over the holding period was 1,138,142 dirhams.
Combined with capital gain, the total net gain was 1,566,623 dirhams.
This worked out to:
- 176% total return
- 14% ROI
The speaker describes this as a good outcome.
Why the apartment was sold
Several reasons are given for selling the apartment.
Service charges were rising, and the building was aging. Bonington Tower is described as around 20 years old, still a good and iconic building, but competing with newer apartments coming onto the market.
The building still has advantages such as:
- Hotel services
- Strong lobby
- Facilities
- Recognizable status
However, those same features contribute to higher service charges.
The rental yield had also softened. It reportedly started around 12%, then fell toward 6.5%.
At that point, the yield became less compelling because villa yields were also available around 5% to 6%.
The speaker also notes that buyers increasingly want newer apartments, which made older apartment stock less attractive compared with newer buildings.
Sale timing
The apartment could potentially have been sold earlier for more.
An offer of around 1.35 million dirhams was received around December 2024, but it was declined because the speaker wanted around 1.4 million dirhams, based on previous market peaks.
In hindsight, the earlier offer may have been better.
Later listings for similar apartments were around 1.3 million dirhams, but the speaker notes that listed prices do not equal closing prices. With several similar units on the market, expected closing prices may fall to around 1.25 million dirhams.
The conclusion is that the sale still happened at a good time, even if the perfect timing may have been earlier.
Why data matters in Dubai property
The speaker emphasizes using data rather than emotion when buying or selling.
The real estate team referenced is described as salaried rather than commission-only, which is presented as a way to reduce pressure to buy at any cost.
The process described includes:
- Running numbers
- Watching comparable listings
- Reviewing transaction data
- Comparing yield
- Evaluating service charges
- Tracking market timing
- Preparing reports and guides
- Running custom feasibility studies for clients
The point is that Dubai investment should be treated as a numbers-driven decision.
Why Dubai remains attractive
Dubai is described as having a rare mix of emerging-market returns and mature-market infrastructure.
The emerging-market side includes:
- Higher rental yields
- Capital growth potential
- A strong country growth story
- Continued inflows of residents and investors
The mature-market side includes:
- Accurate transaction data
- A developed mortgage market
- Financing access for residents and non-residents
- Reasonable loan-to-value options
- Market liquidity
This combination is presented as a major advantage. Investors can use reliable data and financing while still accessing higher-growth returns.
Another advantage is currency stability. The UAE dirham is pegged to the U.S. dollar, which reduces currency uncertainty for investors thinking in dollar terms.
Leverage and cash-on-cash return
The Bonington Tower apartment was bought in cash, not with a mortgage.
The speaker says this was because, at the time, he did not have a stable job or income track record after the global financial crisis, making mortgage access difficult.
If the property had been purchased with a mortgage, the return could have been much higher.
Using leverage, the cash-on-cash return on this property is estimated at 42% annually, based on the down payment and closing costs.
The argument is that Dubai financing can materially improve returns if used correctly.
The UAE lending rate is described as sometimes slightly lower than U.S. lending rates, despite the dirham being pegged to the dollar. The example rate mentioned is around 4% in the UAE, compared with slightly more than 4% in the U.S.
Dubai compared with other markets
The speaker says he has bought more than 30 properties across 11 countries, but none produced returns as strong as Dubai.
Other countries being considered include:
- Georgia
- Colombia
However, Dubai is still described as a strong medium- to long-term investment location.
The key distinction is that Dubai offers both upside and institutional structure: growth, yield, financing, data, liquidity, tax benefits, and residency advantages.
Reasons to still invest in Dubai
Despite selling two properties, the speaker still sees reasons to invest in Dubai.
Possible investment motivations include:
- Personal use
- Golden visa qualification
- Rental yield
- Airbnb income
- Capital appreciation
- Portfolio diversification
- Medium- to long-term exposure to UAE growth
Airbnb is described as booming, with strong income potential in some cases.
The speaker also says he previously claimed he would stop buying Dubai property, but later bought more and regretted some sales. This is used to underline the continued strength of the Dubai investment story.
Lessons from selling too early
One commercial unit was sold, and in hindsight, the market moved higher afterward.
A villa was also sold or discussed as a separate case, with the speaker suggesting it may continue rising.
The broader lesson is that Dubai property can keep appreciating beyond the point where an investor feels ready to sell.
Selling may still make sense for reducing exposure or reallocating capital, but investors should understand the risk of exiting too early.
Why the first apartment was bought in cash
The Bonington Tower apartment was bought with most of the speaker’s savings at the time.
This happened after the global financial crisis, when mortgage access was difficult and the speaker did not yet have steady income.
The decision was risky, but is described as a calculated risk.
Because the property was bought in cash, the return was lower than it could have been with financing. However, it still produced a strong total return.
This is contrasted with another villa investment that did involve a mortgage and reportedly produced a higher cash-on-cash return because of leverage.
Practical decision criteria for Dubai property
Before buying or selling Dubai property, investors should consider:
- Is the property being bought for investment, lifestyle, golden visa, or short-term rental?
- What is the current yield?
- Is the yield softening?
- Are service charges increasing?
- Is the building aging?
- Is newer supply competing with the property?
- What are comparable listings and actual transaction prices?
- What is the realistic closing price, not just listed price?
- Would leverage improve the cash-on-cash return?
- Is the asset still part of the investor’s desired UAE exposure?
- Is selling a portfolio decision or an emotional decision?
- Does the property benefit from Dubai’s broader macro story?
- Is there better use for the capital elsewhere?
Practical takeaway
Dubai property remains a strong part of a diversified global portfolio when bought with discipline and data.
The Bonington Tower example produced a strong result: 854,430 dirhams purchase price, 428,481 dirhams net capital gain, 1,138,142 dirhams net rental income, and 1,566,623 dirhams total net gain, equal to a 176% total return and 14% ROI.
The sale made sense because yields were softening, service charges were rising, and the building was aging. But the broader Dubai thesis remains intact: tax advantages, golden visa access, dollar-pegged currency, good financing, strong transaction data, liquidity, rental income, and continuing demand from global residents and investors.
The main lesson is to treat Dubai real estate as part of a global portfolio: use data, avoid emotional decisions, understand leverage, monitor yield and supply, and sell only when the numbers and portfolio strategy justify it.
