Things are looking up for Dubai at the end quarter of 2022. With foreign investors pushing the prices and new regulations and initiatives set in place by the UAE government, demand is surging at an incredible pace.
If you are considering investing in the UAE real estate market, then naturally, high potential returns are at the top of your goal and objective.
It's wise to research, study the data and identify trends in the market. This blog will help determine which areas offer Dubai's highest rental yields.
The iconic Palm Jumeirah.
1.) The Palm Jumeirah
Located in Jumeirah, Dubai, The Palm Jumeirah is an archipelago made of artificial islands on the Persian Gulf. Dubai is famous for its soaring skyline but what captured the world's imagination is this iconic island shaped like a palm tree when viewed from above. The island is home to Dubai's five-star hotels, resorts and hotel residences, such as The Atlantis, St. Regis Dubai, and Kempinski. Residents can sail the island in a yacht or speedboat whilst enjoying restaurants such as The Point, West Beach and Vista Mare.
Regarding the prices for buying apartments in Palm Jumeirah, studios sell for an average of AED 1.7M, 1-bedroom apartments for AED 2.24M and 2-bedroom flats for AED 2.8M, according to Bayut. If you plan on renting out your apartment and using it as an investment to bring in extra income in rental yields, the average return on investment (ROI) on the flats in Palm Jumeirah is 6%.
Dubai Marina properties average rental yield at 6.3%.
2.) Dubai Marina
Dubai Marina is an artificial marina situated next to Palm Jumeirah. A sought-after neighbourhood famous for its luxurious lifestyle, entertainment options, shopping malls and skyscrapers, it is known for The Beach in front of the Jumeirah Beach Residence (JBR), a leisure complex with stretches of sandy beachfront, smart cafes and al fresco dining. Dubai Marina is quite famous with tourists and residents alike.
Dubai Marina's average rental yield is currently 6.3% for apartments, making it an area with one of the best rental yields in Dubai.
Downtown Dubai is where the most famous landmark, the Burj Khalifa is located, making this location very popular amongst tourist.
3.) Downtown Dubai
The Dubai Downtown is home to Dubai's most iconic and prominent landmark- The Burj Khalifa. It is also home to the country's largest mall, The Dubai Mall. The area is primarily home to residential, leisure and hotel buildings.
The area is extremely popular with tourists, making it a fantastic location to invest in short-term accommodation.
4.) Dubai Hills Estate
Dubai Hills Estate is home to a community of family-friendly and affluent neighbourhoods.
Developed by one of the country's leading developers, EMAAR, this prime location has an excellent 18-hole golf course complete with luxurious amenities and is close to major roads.
It is easily accessible with a prime location next to Al-Barsha south and along the E44 Al-Khalil Road highway. The average rental yield in Dubai Hills Estate is around 5.3% in apartments and villas.
5.) Jumeirah Village Circle
Pioneered by Nakheel Development, Jumeirah Village Circle (JVC) is located in the heart of the new Dubai. Lucrative pricing, high rental yields, and prime location make JVC in high demand and offer one of the best investments in the city.
The average rental yield in Jumeirah Village Circle is 6.21% for an apartment, and 5.86% for a villa, making it a solid place to invest in both short and long-term rental investments.
Jumeirah Lakes Towers is located in close proximity to Dubai Marina.
6.) Jumeirah Lakes Towers
Jumeirah Lakes Towers is an extensive development by DMCC situated along artificial lakes facing Jumeirah Islands. The area is a community of residential and commercial towers constructed in clusters around artificial lakes. JLT caters to all budgets and property requirements from short and long-term rentals and is a perfect blend of leisure and business. It is also located right behind Dubai Marina, making JLT densely populated.
Because of its proximity to Dubai Marina, Downtown Dubai, and other commercial hubs, JLT has benefited from an influx of buyers and investors in demand for mid-range properties. Essentially, JLT has similar amenities to its neighbour, Dubai Marina, just at a lower price tag – making it incredibly attractive to investors with a particular budget.
