UAE: How To Build Wealth With Real Estate In 'Slow, Steady But Strategic' Way

(MENAFN- Khaleej Times)

Building wealth with real estate starts small and requires patience if one wishes to see fruitful results. Even a single apartment can be a strong long-term wealth driver when it sits in a community with consistent rental demand. Investors sometimes are too ambitious too soon and too eager to see a stack of cash, but real estate rarely rewards impatience.

“Often, the most serious portfolios don't start with a penthouse on the Palm Jumeirah,” Porush Jhunjhunwala, CEO of Banke International Properties, told KT Luxe.

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“It usually starts with a studio or a one-bedroom apartment in the right community. You don't need to buy properties often to build meaningful wealth in Dubai's real estate market. In fact, many of the most successful investors we work with built their net worth through one or two well-selected assets held patiently over time.”

The process is gradual, built on choosing the right location, securing stable tenants, and allowing time for values to rise. Even a modest unit can become a reliable source of income and appreciation when held thoughtfully, which is why experts say the journey begins long before the first major profit appears.

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It's worth noting that some areas, including International City, JVC, and Dubai Silicon Oasis, have some of the highest rental yields. Rental yield is the percentage that shows the return on investment (ROI) an investor can expect to receive, and can change depending on the location, type of property, and market conditions.

Strong foundation

In Dubai, average gross yields remain healthy, and in certain mid-market communities they can exceed seven per cent. These figures reflect strong rental demand, which is often the foundation of long-term wealth building through real estate.

As reported earlier by Khaleej Times, UAE's residential real estate market value is set to grow from $143.22 billion in 2025 to $217.09 billion by 2030, marking a compound annual growth rate (CAGR) of 8.66 per cent. People in the UAE are enthusiastic about buying property. According to data by Property Finder, 69 per cent of respondents say they are interested in buying property in the next six months.

“At the same time, the UAE residential market is forecast to grow at approximately 5.1 per cent annually between 2025 and 2030, driven by a rising population, long-term infrastructure commitments, and sustained investor participation. That type of steady appreciation, layered on top of solid rental income, allows even a single asset to compound in value over a multi-year horizon,” Jhunjhunwala explained.

Patience, not prediction

Time the market, buy low, sell high, then repeat - this is the process investors and property buyers know all too well. Jhunjhunwala, however, says that these are the biggest misconceptions when it comes to building wealth.“Sustainable wealth in real estate is almost always built through patience, not prediction,” he said.“One of the clearest examples is Dubai's performance in 2025.”

Building wealth through real estate investments is essentially long-term. The long route, however, ensures that profit remains steady, reliable, and grounded in real market performance rather than short bursts of speculation. A get-rich-quick scheme simply does not hold up against the natural cycles of the property market, where values grow more meaningfully over longer periods.

Keep steady and strategic

First and foremost, a mortgage must be treated like a tool, not the entire strategy. Even as credit availability increases, Jhunjhunwala advises clients to stress-test their cash flows, asking themselves whether they can maintain payments if conditions shift unexpectedly. Borrowing should support a realistic long-term plan rather than depend on sharp price jumps.

In addition to that, Chief Investment Officer of investment company Century Financial, Vijay Valecha, notes that reducing debt itself can be a powerful wealth builder. Paying down loans during periods when interest rates are high provides a guaranteed return equal to the interest saved. He adds that investors should not treat rental income or dividends as spending money but instead automate reinvestment so that every dirham earned continues to compound.

According to Valecha, years without new acquisitions can be some of the most significant for growing net worth. Regular investing through simple, diversified vehicles and maintaining healthy cash buffers help preserve stability while positioning investors for future opportunities.

All in all, wealth in real estate is not something that is created due to pure happenstance. It is built by buying carefully, holding patiently, and allowing time and compounding to do their work.“Wealth is created in the quiet years where a good asset is simply doing its job,” Jhunjhunwala underscored.

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