Five myths, debunked.
Every market accumulates folklore. Dubai has more than most — partly because the market is young, partly because most of the loudest voices are selling you something.
Myth 1: "Dubai property always goes up"
No market always goes up. Dubai has had at least two major corrections since freehold was introduced — a brutal one in 2008–2011 and a longer, milder one from 2014 to 2020.
The truthful version: Dubai has, over a 20-year window, delivered competitive long-term returns for buyers who entered in structurally strong areas and held through cycles. That is a very different claim from "always goes up."
Myth 2: "You can't lose money off-plan — the developer has to refund you"
One of the most persistent and dangerous myths. It misreads the escrow rules and RERA framework.
Upside
- If RERA formally cancels a project, buyers get escrow refunds (subject to funds being available)
- Registered escrow accounts offer real legal protection in most cases
- Modern RERA enforcement is materially stronger than pre-2008 chaos
Downside
- If the developer defaults without formal cancellation, the path to a refund is slow and messy
- In practice most disputed cases deliver partial recovery, not full
- If YOU default on a payment schedule, the developer can keep up to 30% of property value
- "Refund guaranteed" is marketing language, not legal reality
Myth 3: "Dubai has no property taxes"
Partially true in the UK/US sense (no annual council tax), but misleading as a general claim.
| Cost item | Rate | Frequency |
|---|---|---|
| DLD transfer fee | 4% of price | One-time, on every purchase |
| Broker commission | ~2% + 5% VAT | On purchase + on re-sale |
| Oqood / registration fees | ~AED 4,000 | One-time per transaction |
| Service charges | AED 10–30+/sqft/year | Annual, forever |
| VAT on services | 5% | On all services, maintenance, agent fees |
A buyer treating Dubai as zero-cost-of-ownership will consistently under-model total cost by several percent. Model it accurately.
Myth 4: "Rental yields in Dubai are always 7–10%"
Gross yield on some units — particularly studios and one-bedrooms in mid-market areas — can indeed reach 8–10%. But gross yield is the wrong number.
If someone quotes double-digit yield, ask for the full cost breakdown. The gap between gross and net is where the marketing happens.
Myth 5: "The Golden Visa guarantees your investment will be profitable"
The Golden Visa guarantees residency, subject to maintaining the qualifying investment. It does not guarantee profit, positive yield, or liquidity.
The meta-lesson
Every myth has a kernel of truth wrapped in marketing. The rest of this course is largely an exercise in stretching them back to their accurate shapes.