Dubai property as a strategic play for African and diaspora investors

On a humid evening beside Dubai Marina, it is easy to spot the visitors who are not just there for the skyline selfies. They walk slower, asking brokers for service charge breakdowns, checking rental listings on their phones, comparing yields with what they know back home in Lagos, Nairobi or London. For a growing number of Africans and diaspora professionals, Dubai property is no longer just a holiday fantasy. It has become a serious question of strategy. Is this still a smart way to protect and grow capital, or is Africa’s new love affair with Dubai arriving late in the cycle.

Dubai real estate has been built on a simple promise. Foreign buyers can own property outright in designated freehold areas, with clear land registry, transparent title deeds and a currency that is pegged to the United States dollar at a stable exchange rate. (Bayut) For investors from markets where land records are messy and currency swings can wipe out returns, that combination is powerful. Since the global financial crisis, Dubai has repeatedly reinvented its skyline and has positioned its property market as an international asset class. Research from the EU Tax Observatory suggests that foreign nationals now hold around 43 percent of the total value of residential property in the city, with foreign ownership growing by roughly 20 percent between 2020 and early 2022. (Eutax) African buyers are part of this wave and some analyses already describe them as a rising force in Dubai transactions.

For African and diaspora investors, three forces define the opportunity. The first is income. Dubai continues to offer rental yields that compare favourably with other global cities. Data from independent research houses suggests that average apartment yields in late 2024 were around seven to eight percent, while villas delivered about five percent. (Cavendish Maxwell) Deloitte reports that residential sales prices rose about 20 percent in 2024, while rents climbed roughly 19 percent, driven by population growth and limited supply in key districts. (Deloitte) Add the fact that Dubai currently levies no ongoing property tax, no capital gain tax on disposal and no tax on rental income, and the appeal for yield focused investors becomes obvious. (Elan Real Estate) For an African professional earning in dollars or pounds, a well located apartment in Dubai can function as a hard currency income stream, a hedge against political risk at home and a lifestyle option when travel is needed.

The second force is residency. Property is no longer just an asset class in Dubai. It is a gateway to presence. A property worth at least 750 thousand dirhams can qualify the owner for a three year investor residence visa, subject to conditions such as minimum equity if there is a mortgage. (Dubai Land Department) At the two million dirham mark, investors can apply for the ten year golden visa, which allows long term residency and the ability to sponsor close family members. (DLD كيوب) For African founders who travel frequently to meet partners, funders and clients, this stability can be worth as much as the rental yield. It can also be a strategic base for children’s schooling, personal healthcare and access to wider markets across the Middle East, Europe and Asia.

The third force is access. Freehold zones keep expanding and now cover a wide range of communities, from downtown towers to family suburbs and new waterfront districts. (Off Plan Projects) Africans are not restricted by nationality. They can buy directly in their own name or through approved holding vehicles, including companies in financial free zones like the Dubai International Financial Centre or Jebel Ali, provided those entities meet regulatory conditions. (Mbany Real Estate) For diaspora entrepreneurs who already operate regional companies, this makes it possible to integrate Dubai property into a wider corporate structure for estate planning, financing and cross border tax efficiency, with proper professional advice.

There are already visible patterns in how African investors are using these levers. Some high income professionals in West and Southern Africa buy small city centre apartments as buy to let assets, while keeping their primary homes in Accra, Johannesburg or Harare. Others in the diaspora, particularly in Europe, treat Dubai villas as part lifestyle asset, part asset protection, shifting a portion of their net worth from jurisdictions with higher tax and inheritance scrutiny into a market that offers both privacy and global connectivity. The most strategic founders use Dubai homes as operating bases, hosting investors, partners and teams during short sprints while their main operations stay anchored on the continent.

However, the opportunity sits alongside real tension. The same boom that has delivered strong returns has also stretched affordability and introduced new risks. Financial press reports describe a market that has logged nearly five consecutive years of price growth and is now feeling strain, especially in the mass apartment segment. Analysts note that tens of thousands of new units are scheduled for completion between 2025 and 2027, and that speculative flipping of off plan units is already slowing as buyers become more cautious. (Financial Times) Rents have risen sharply, and stories of middle income families squeezed by landlord power and rising service charges are now common. (Financial Times) The peg of the dirham to the dollar stabilises the currency but also means local borrowing costs move in step with United States interest rate decisions, which can quickly change the attractiveness of leverage.

For African and diaspora investors, the practical question is not whether Dubai is attractive. It clearly is. The better question is under what conditions it is attractive for a specific person or company. That starts with clarity of purpose. An investor who wants pure income should run conservative scenarios that assume lower rents, longer vacancy and modest price corrections, and still see acceptable yields after service charges and financing costs. Someone focused on residency and mobility should ask if the property is in a location they can realistically use and if the golden visa or investor visa aligns with their wider life plans.

Africa's should treat Dubai property as part of a portfolio, not a replacement for investment at home, and should make sure their advisers understand both jurisdictions. Dubai will continue to send a strong signal to African capital in the coming years. Those who listen carefully, distinguish short term hype from structural advantages and align their decisions with real strategy rather than fear of missing out will be better placed to turn its skyline from a distant dream into a disciplined asset.