Sharing My Story of Buying and Renting Out Property on Airbnb in Dubai

I want to share my journey of purchasing a property and renting it out on Airbnb here in Dubai, as well as my adventures as a newcomer to this vibrant desert landscape.

Let’s rewind to the autumn of 2022 when I made the big move to Dubai after being offered an exciting work opportunity. I vividly remember sitting at home, watching snowfall in April, when the idea of relocating to Dubai popped up. And guess what? I thought, “Why not?” Just a month later, I found myself in Dubai for a week-long visit to explore and experience the vibes. And you know what? It seemed like a plan that could work! Fast forward, and it’s been over a year since I made the move to Dubai, and I’m loving it!

During 2023, I took the leap and invested in a property in Downtown Dubai, a mere 5-minute stroll away from the iconic Burj Khalifa. The process was surprisingly smooth – it felt almost like buying a pair of shoes online, if I’m being honest! I invested around 5 million EUR in a spacious 2-bedroom apartment spanning 95 square meters. As a non-resident, I could also buy with a mortgage for 50% of the property’s value, while residents can go up to 80% of the value.

Initially, I thought I’d manage the rental on my own, but time constraints made me rethink. I decided to partner with a company that handles everything for me in exchange for about 20% of the rental income. And let me tell you, it’s been worth every bit! My only responsibilities now are deciding which bank account to receive the payments in and how often I want them.

I kicked off advertising my apartment on Airbnb in July, which is considered a low-season month. The peak season in the UAE is from November to April. Surprisingly, even without any reviews, I achieved a 100% occupancy rate in August, the very next month after listing the property on Airbnb. And it doesn’t stop there – September also hit 100%, followed by 93% in October.

Check out my apartment on Airbnb: Link to Apartment

In terms of earnings, I’ve raked in about 3,000 EUR per month (after the 20% fee for the management company) during these initial 3 low-season months. But the real jackpot supposedly lies in the high season. For instance, a month’s rental in November costs around 10,000 EUR, while December soars to 12,900 EUR. And the icing on the cake? No taxes on rental income or property value appreciation when I eventually decide to sell – because there’s no property tax in the UAE. The management company estimates a net profit of 42,000 per year.

When it comes to returns, it feels like a pretty solid investment. The AED is pegged to the USD and is considerably less volatile than the EUR. Dubai’s real estate market has seen a 7.5% annual growth over the past 15 years on average, and I can’t help but feel optimistic about its future given the attention this region is receiving. Adding to the excitement, Ras-Al-Khaimah (another Emirate in the UAE) has become the first Gulf city to embrace gambling, and there’s the Dubai Masterplan 2040, a government initiative aiming to more than double the population by 2040.

Got any questions about life, living, or investing in the United Arab Emirates? Feel free to drop your queries – I’m here to help!