Where in Dubai can you earn the most from renting real estate?
The report of Bayut, the largest real estate portal, says that the highest rental yield - up to 11%6, can be obtained in three districts of Dubai: Dubai Investments Park, Discovery Gardens and Liwan. In turn, in Dubai Sports City, Dubai Silicon Oasis and Motor City, it is possible to obtain an investment return of up to 10% based on the expected rent for apartments.
Also in the report for the first quarter of this year, Bayut reported that areas such as Green Community, Al Sufouh and Damac Hills, providing rental yields of more than 8%.
All of these areas of Dubai provide significantly higher rental yields compared to cities such as London, New York, Hong Kong and Mumbai, where incomes typically range from 4% to 7%. At the same time, real estate prices in Dubai are much more affordable than in most other major global cities.
The CEO of Bayut and the head of Dubizzle Group MENA, Haider Ali Khan, emphasizes that the Dubai real estate market remains promising despite global challenges and inspires investment opportunities in the context of current market trends.
"The development of new communities and innovative development strategies during the construction phase highlight the attractiveness and sustainability of Dubai as a real estate hub. It is important to promote cooperation and strategic planning to maximize profits and sustainable growth in the real estate market," Khan said.
The Bayut report also clearly shows that villas and townhouses in International City show an average return on investment of more than 7%, which makes them an attractive option for investors. Damac Hills 2 and The Valley offer returns of more than 6%, while middle-class villas in Jumeirah Village Triangle, JVC and Mudon offer investors 6 to 8% returns. In the luxury villa segment, The Sustainable City stands out with a yield of more than 7%, due to its unique characteristics and limited market supply. Al Barari and Tilal Al Ghaf also show returns of over 6%.
Bayut's analysis shows that the Dubai real estate rental market is undergoing price differentiation. The cost of renting affordable apartments in the emirate has increased dramatically, reaching 17%, while apartments in the middle price segment have risen in price by 12%. Paradoxically, the rental of luxury real estate, on the contrary, showed a decrease of 4%.
This dynamic is due to several factors:
- Increasing demand for affordable housing from the growing number of people moving to Dubai.
- Limited supply of affordable apartments amid constant population growth.
- A decrease in demand for luxury housing due to the instability of the global economy and the strengthening of the US dollar.
Middle-class villas increased in price by 2-17%, while luxury villas increased in rental value by 13%. In the area of Al Barsha and Damac Hills, villas have become more affordable by 12-14%.
As for Deira and Al Nahda, they remain popular for those looking for affordable housing in the apartment sector, while Damac Hills 2 and Mirdif attract those looking for villas. According to analysts, apartments in Jumeirah Village Circle (JVC) and Bur Dubai are the most popular in the middle price segment. JVC is also leading the demand for villas, ahead of Arabian Ranches 3.
In the luxury segment, apartment tenants still prefer Dubai Marina and Business Bay. Dubai Hills Estate and Al Barsha have become favorites among those looking for luxury villas.
It is worth noting that:
- JVC attracts with its developed community, affordable prices and proximity to infrastructure.
- Bur Dubai is appreciated for its central location, historical atmosphere and many housing options.
- Dubai Marina and Business Bay are famous for their skyscrapers, panoramic views and luxurious lifestyle.
- Dubai Hills Estate and Al Barsha offer spacious villas, green areas and a high level of security.
According to the Bayut analytical company, Dubai real estate shows a steady increase in demand for family villas. This is facilitated by the fact that families value peace, security and the availability of amenities in their residential complexes. Family villas in the following locations are in the greatest demand:
- Emirates Living: The community is known for its luxury villas, green parks and developed infrastructure.
- The Meadows: A popular choice for families with children due to affordable prices, spacious homes and the availability of schools.
- Jumeirah Park: combines a calm atmosphere, proximity to nature and a convenient location.
It should be noted that Bayut analysts predict that the demand for family villas in Dubai will continue to grow.
It is important to consider your priorities, needs and budget when choosing an area for rent.
