Property vs Stocks

It depends on your assumptions. Dubai residential property has historically offered gross rental yields of roughly 5-8%, higher than many global cities, plus capital appreciation in strong years. Global equity indices have returned around 7-10% a year over the long run. This calculator lets you set both and see which wins after Dubai transaction costs. Neither the UAE nor most index investors pay capital gains or dividend tax on these returns, which flatters both sides versus higher-tax countries.

Gross yields vary by area and property type. Apartments in mid-market communities often show 6-8% gross, while prime villas can be 4-5%. Gross yield is before service charges, maintenance, management fees and vacancy, so subtract those (set via the "annual costs" slider) to get your true net return.

On entry, budget around 6% of the price: the 4% Dubai Land Department transfer fee plus roughly 2% agency commission, along with smaller trustee and registration fees. While you hold it, annual service charges (billed per square foot), maintenance and any management fees reduce your net rent. On exit, a further agency commission of around 2% typically applies. This calculator bakes those in so the comparison is fair.

To compare fairly with a stock portfolio that compounds, it assumes your net rental income is reinvested each year at the same market return you set. If you would instead spend the rent, your property total would be lower but you would have enjoyed the income along the way. The market side is a simple compounding of your lump sum at the return you choose.

Property can offer leverage (a mortgage can amplify returns, though it adds risk and is not modelled here), a tangible asset, and in the UAE a property worth AED 2 million or more can qualify you for a 10-year Golden Visa. Stocks offer liquidity, diversification, no maintenance and far lower transaction costs. This tool compares the pure numbers; the non-financial factors are yours to weigh.