How I Made 74% ROI on Dubai Property Investment in 18 Months

Aaron Parton
5 min read

As a Dubai property investment consultant specialising in helping UK investors, I don't just advise on Dubai real estate I actively invest myself. This is the complete breakdown of my first 1-bedroom apartment project in Dubai: how I purchased, renovated, rented, and sold it for a 74% return on equity in just 18 months

Finding the Right Property in Dubai

The property was a 1-bedroom, 760 sq ft apartment  purchased for AED 950,000 (£190,000).

One of the biggest advantages of buying property in Dubai compared to the UK is the transaction speed. From initial viewing to receiving the keys took just seven weeks a timeline almost impossible in the UK property market.

Key Purchase Details:
- Property Type: 1-bedroom apartment
- Size: 760 sq ft
- Purchase Price: AED 950,000 / £190,000
- Timeline: 7 weeks from offer to keys

The Renovation: Adding Value to Dubai Property

To maximise both rental income and resale value, I completed a full modern renovation of the apartment. This is a proven strategy in Dubai's competitive property market, where high-quality finishes command premium rents and sale prices.

Renovation Costs Breakdown:
- Core Renovation: AED 100,000 / £20,000
- Additional Fees (DLD transfer, trustee, mortgage arrangement, etc.): AED 47,500 / £9,500
- Total Investment: AED 1,097,500 / £219,500

The renovation took 8 weeks to complete. The transformation turned a dated apartment into a modern, highly desirable unit that stood out in its community a crucial differentiator in Dubai's rental and resale markets.

Rental Income Before Sale: Dubai's Strong Yields

Before selling, I rented the property for one year Even after covering mortgage repayments and service charges, I achieved a net rental profit of AED 58,000 (£11,600).

This demonstrates one of Dubai's key investment advantages: strong rental yields that can generate cash flow even while you hold for capital appreciation.

Rental Period Highlights:
- Rental Duration: 12 months
- Net Rental Profit (after mortgage & fees): AED 58,000 / £11,600
- This added an extra boost to overall ROE

The Sale and Final Profit Calculation

After holding and renting for one year, I sold the property for AED 1,300,000 (£260,000) a significant capital appreciation over the purchase price.

Complete Financial Breakdown:

Total Outflows:
- Purchase Price: AED 950,000 / £190,000
- Renovation: AED 100,000 / £20,000
- Fees (DLD, mortgage, etc.): AED 47,500 / £9,500
- Mortgage Early Exit Fee: AED 10,000 / £2,000

Total Capital Invested (20% down payment + renovation + fees):  
AED 337,500 / £67,500

Total Inflows:
- Net Rental Income: AED 58,000 / £11,600
- Sale Profit (after all costs): AED 192,500 / £38,500

Net Profit: AED 250,500 / £50,100

Return on Equity: 74% in under 18 months

Why This Dubai Property Investment Worked

This case study highlights the unique advantages of Dubai property investment for UK investors:

1. Leverage Through Mortgages

By using a mortgage, I only needed to put in 20% upfront, maximising my return on actual cash invested.

2. Renovation Value-Add Strategy

The £20,000 renovation created appreciation far beyond average market growth, proving the power of adding value in Dubai's property market.

3. Strong Rental Demand

Dubai's rental market is robust, allowing me to generate £11,600 in net rental profit while holding for capital appreciation.

4. Fast Transaction Timelines

- 7 weeks to complete purchase
- 8 weeks for renovation
- Fast resale process

This speed allows investors to move quickly and capitalise on market opportunities.

Key Lessons for UK Investors Considering Dubai Property

Transaction Speed Matters

Dubai's streamlined property purchase process is a massive advantage over the UK market.

Renovation Can Deliver Outsized Returns

A well-executed renovation can significantly outperform market appreciation rates.

Rental Income Provides Cash Flow Security

Even while waiting for optimal sale timing, rental yields cover costs and generate profit.

Leverage Amplifies Returns

Using a mortgage allowed me to achieve 74% ROE on my cash invested, rather than a lower return on the full property value.

Final Thoughts: Dubai Property Investment Strategy

For me, this wasn't just a financial win it was proof that Dubai property can deliver exceptional returns** when approached strategically.

This is the same investment framework I use when advising UK clients:
1. Acquisition: Find value opportunities in high-demand areas
2. Value-add: Renovate to stand out in the market
3. Rental income: Generate cash flow while holding
4. Strategic exit: Sell when market conditions optimise returns

If you're a UK investor considering Dubai property investment, whether off-plan or resale, I'm happy to share how this strategy can be applied to your situation.

Enquire now
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Aaron Parton