A new report from Property Finder places the UAE among the top four countries globally for owning a vacation home, a ranking that carries strong implications for investors focused on returns, capital appreciation, and portfolio diversification.
Unlike typical lifestyle rankings, this study evaluates 32 countries using a data-backed Vacation Score, measuring affordability, accessibility, market performance, and rental potential. The UAE’s score of 65.4/100 places it just behind Spain, France, and Portugal — established giants in the second-home market.
For investors, this position confirms what the market has signaled for years:
the UAE is no longer just a luxury destination, it’s a high-performance asset market with global demand.
Why This Ranking Matters for Investors
1. Strong Accessibility = Strong Short-Term Rental Performance
The UAE ranks #1 globally in air transport infrastructure and #2 in international openness.
With 8 international airports, 6 national carriers, and over 600 destinations served, the UAE offers unmatched connectivity.
Why this matters:
High accessibility directly correlates with higher occupancy rates for vacation rentals. The more flights coming in, the stronger and more stable the tourism-driven rental market becomes.
This is one of the reasons Dubai consistently records 70–85% occupancy rates in prime tourism months.
2. High Value for Money Compared to Global Competitors
The UAE earned an Affordability & Value score of 68.1/100 — higher than many Western markets, despite premium-quality developments.
In simple terms:
Investors get more asset per dollar in the UAE than in most mature markets.
Example:
- For the price of a compact apartment in Paris or London, investors in Dubai or Abu Dhabi can often secure larger, newer, and more luxurious properties — often in master-planned, amenity-rich communities.
This value advantage becomes even more significant when factoring in:
- 0% property tax
- 0% capital gains tax
- 100% foreign ownership
- High rental yields (5–9+%)
- Strong 10-year Golden Visa eligibility for property buyers
3. Consistent Capital Appreciation in Key Areas
Over the past decade, UAE real estate has shown resilient upward momentum, even outperforming many mature global markets post-2021.
Examples:
- Dubai’s prime areas (Palm Jumeirah, Downtown, JBR) saw 20–40% capital appreciation in select asset classes between 2021–2024.
- High-demand communities recorded consistent year-on-year increases, driven by population growth, global investor inflow, and limited new supply in core zones.
For investors looking at long-term wealth building, this steady appreciation — combined with no property tax — provides an exceptionally strong long-term ROI profile.
4. Lifestyle Appeal Supports Long-Term Rental Demand
While Spain and France scored high on lifestyle and tourism experiences, the UAE’s strength lies in offering a luxury-driven, safe, stable, and highly serviced environment.
For vacation-home investors, this translates into:
- Year-round tourism
- High-spending visitor demographics
- Strong demand for short-term rentals
- Young, growing population that drives long-term tenant occupancy
The UAE also benefits from being one of the safest countries in the world, a top priority for international vacation-home buyers.
How the UAE Compares to the Top 5
1. Spain – 79.3/100
High accessibility and cultural appeal, but stricter taxes and slower acquisition processes than the UAE.
2. France – 69.4/100
Strong tourism but high purchase and ownership taxes; suitable mainly for premium-tier buyers.
3. Portugal – 65.8/100
A favorite for lifestyle investors and retirees, but with limited upside compared to the UAE’s growth pace.
4. UAE – 65.4/100
Exceptional returns, tax-free ownership, unmatched infrastructure, and investor incentives.
5. USA – 64.4/100
Massive variety but high taxes, complex regulations, and inconsistent yields depending on the state.
Final Takeaway for Investors
The UAE’s ranking as the 4th best country worldwide for owning a vacation home reinforces what many savvy investors already know:
It is one of the strongest, most tax-efficient, and most stable real estate markets in the world.
With:
- High rental yields
- Strong tourism-driven occupancy
- No property or capital gains tax
- Strong long-term appreciation
- Global connectivity
- Incentives like the Golden Visa
The UAE offers a combination that few markets can match.
For investors looking to add a high-performing, lifestyle-enhanced, globally attractive asset to their portfolio, the UAE continues to stand out and this latest ranking only strengthens that position.
