7.5% NET on a new build in a rising property market in a country with sound political and social structure, AND TAX FREE is pretty good. Try gettin one in the UK. Make sure you put the kettle on before you search tho.....you`ll be there for 10 years!. Also, foreign exchange risk is something that goes with the territory of investing abroad. My advice would be that the worst thing you could do is to sell it. The dollar hasnt exceeded far past 2 to the pound for over a decade, so if you had the same investment, with the same calculations you have done above BUT the dirham was at its median value to the pound of around 5.5, your rental figures and sale prices would increase by nearly 40%. That then turns the net yield into over 10% and your for sale tag at around 90+k. NICE!. For your information, the topic of the dirham splitting its pegs to the dollar has been in the political pot. Maybe 2010-2015. Check out the rates of similar middle eastern countries exchange rates with the pound!. Further to this, you assume the property market in dubai is likely to become stagnant. How and why do you assume this. A body in motion tends to stay in motion. If you quantify demand to supply in figures there is statistical and anecdotal evidence that demand from investors, tourists, workers, and potential ex pats will come flocking. The workforce needed in dubailand alone is likely to half fill international city. I think the future is sound for int city....