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
The property was a 1-bedroom, 760 sq ft apartment purchased for AED 950,000 (£190,000).
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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
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.
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
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.
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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
Return on Equity: 74% in under 18 months
This case study highlights the unique advantages of Dubai property investment for UK investors:
By using a mortgage, I only needed to put in 20% upfront, maximising my return on actual cash invested.
The £20,000 renovation created appreciation far beyond average market growth, proving the power of adding value in Dubai's property market.
Dubai's rental market is robust, allowing me to generate £11,600 in net rental profit while holding for capital appreciation.
- 7 weeks to complete purchase
- 8 weeks for renovation
- Fast resale process
This speed allows investors to move quickly and capitalise on market opportunities.
Dubai's streamlined property purchase process is a massive advantage over the UK market.
A well-executed renovation can significantly outperform market appreciation rates.
Even while waiting for optimal sale timing, rental yields cover costs and generate profit.
Using a mortgage allowed me to achieve 74% ROE on my cash invested, rather than a lower return on the full property value.
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.
