Top Dubai Areas for Highest Rental Returns

According to recent analysis by Bayut, apartments in Dubai Investments Park, Discovery Gardens, and Liwan are yielding the highest rental returns, with up to 11% for properties within the affordable range. Close behind, Dubai Sports City, Dubai Silicon Oasis, and Motor City also show promising returns, offering up to 10% based on projected rental incomes.

The analysis for the first quarter indicates that Green Community, Al Sufouh, and Damac Hills are also performing well, providing over 8% in rental returns, a figure that outpaces many international markets. Compared to major global cities such as London, New York, and Hong Kong, where rental yields average between 4% and 7%, Dubai’s property market offers higher returns and more competitively priced prime properties.

Haider Ali Khan, CEO of Bayut and head of the Dubizzle Group MENA, commented on the market’s resilience amid global economic uncertainties. Khan stated that Dubai’s real estate sector continues to show strength and promise, bolstered by new master communities and innovative off-plan developments. He further discussed the importance of strategic planning and collaboration to navigate the opportunities and challenges ahead, aiming to drive growth and maximise returns in the market.

For villa investments, Bayut’s report highlights International City, where buy-to-let villas and townhouses average over 7% in returns. Damac Hills 2 and The Valley also offer attractive returns above 6%. In the mid-tier villa category, properties in Jumeirah Village Triangle, JVC, and Mudon show ROI projections between 6% and 8%. The Sustainable City leads in the luxury villa segment with returns exceeding 7%, attributed to its unique property features and limited supply.

The report further details upward changes in rental prices across different segments. While affordably priced apartments saw increases between 1% and 17%, the luxury segment experienced up to a 4% decline in rentals. Villa rentals are showing diverse trends, with affordable villas in Mirdif witnessing a slight price increase and luxury villas in locations like Al Barsha and Damac Hills seeing large increases.

Popular areas for affordable apartments include Deira and Al Nahda, while Damac Hills 2 and Mirdif are preferred for villa rentals. The mid-tier market sees high demand in Jumeirah Village Circle and Bur Dubai for apartments, and JVC and Arabian Ranches 3 for villas. In the luxury segment, Dubai Marina and Business Bay remain top choices for apartments, with Dubai Hills Estate and Al Barsha attracting those seeking high-end villas.

Bayut also stressed a rising demand for family villas, indicating a change towards larger, family-oriented living spaces in both luxury and mid-tier segments. This trend reflects a growing preference for spacious and family-friendly residential environments.

Original article reference: Khaleej Times.


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