According to the latest analysis by Bayut, apartments in Dubai Investments Park, Discovery Gardens, and Liwan offer the best rental returns of up to 11 percent to affordable property buyers.
Dubai Silicon Oasis, Dubai Sports City, and Motor City have appeared as highly attractive choices. They offer up to 10 percent return on investment (ROI) based on projected apartment rental yields.
Bayut’s first-quarter analyst revealed that Green Community, Al Sufouh, and Damac Hills gave over eight percent rental returns, surpassing benchmarks established by most global markets.
All these areas of Dubai offer much higher rental yields than all the major cities, such as London, New York, Hong Kong, Mumbai, and other towns, where rental returns usually average four to seven percent. More significantly, prime property prices are also much more reasonable than in most global cities.
Haider Ali Khan, CEO of Bayut and head of Dubizzle Group Mena, said Dubai’s real estate market will remain strong despite ongoing global uncertainties. Prevailing market trends, investment opportunities, and growth strategies instill confidence in stakeholders navigating its dynamic landscape.
“The emergence of new master communities and innovative approaches to off-plan developments underscore Dubai’s resilience and appeal as a real estate hub. As we confront the challenges and opportunities ahead, fostering collaboration and strategic planning will be pivotal in maximizing returns and creating sustainable growth in Dubai’s real estate sector,” said Khan.
In terms of villas, Bayut said buy-to-let villas and townhouses in International City exhibit an average RoI of over seven percent, rendering it an appealing option for potential investors. Similarly, The Valley and Damac Hills 2 offer 6% plus ROI to investors. Mid-tier villas in Jumeirah Village Triangle, JVC, and Mudon have projected ROIs between six and eight percent. In the luxury villa segment, The Sustainable City stands out with an ROI exceeding seven percent due to the distinctive features of the properties and the limited market supply it offers. Tilal Al Ghaf and Al Barari present strong ROIs exceeding 6%.
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Up to 17% jump in rents
According to Bayut’s data analysis, affordable apartment rentals increased from one percent to 17 percent, while mid-tier segment apartments jumped to 12 percent. Contrarily, luxury apartment rentals have noticed a drop of up to 4%.
Reasonably-priced villas have generally become cheaper by up to 3 percent, with rental houses in Mirdif recording upticks of one percent to seven percent. Mid-tier villa rentals have registered increases from 2% to 17%, with specific bed types in Jumeirah Village Circle (JVC) and Town Square reporting price drops of under 2%. Luxury villa rentals have surged by 13 percent, although four-bedroom homes in Al Barsha and Damac Hills have become relatively more affordable by 12 percent to 14 percent.
Among those desiring reasonable accommodations, Deira and Al Nahda have appeared as popular options for apartments, while Damac Hills 2 and Mirdif have garnered awareness for villas. In the mid-tier element, Jumeirah Village Circle (JVC) and Bur Dubai apartments have been highly requested among tenants, whereas JVC and Arabian Ranches 3 properties have drawn villa-seekers. In the luxury class, Dubai Marina and Business Bay have remained sought-after termini for apartment rentals, while Dubai Hills Estate and Al Barsha have been preferred for high-end villa rentals.
“There is a noticeable resurgence in the demand for family villas. The market has witnessed a heightened interest in larger family-oriented residences, particularly within the luxury and mid-tier communities, indicating a shift towards more spacious properties and a preference for family-friendly living environments,” Bayut said.
