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Dubai United Arab Emirates
According to Bayut’s most recent analysis, apartments in Dubai Investments Park, Discovery Gardens, and Liwan provide the best rental returns of up to 11% for affordable property buyers.
Dubai Sports City, Dubai Silicon Oasis, and Motor City have emerged as highly appealing options, offering up to 10% return on investment (RoI) based on projected apartment rental yields.
Bayut’s first-quarter analyst revealed that Green Community, Al Sufouh, and Damac Hills provided more than 8% rental returns, exceeding benchmarks set by most global markets.
All of these areas in Dubai have much higher rental yields than major cities such as London, New York, Hong Kong, Mumbai, and others, where rental returns typically range from four to seven percent. More importantly, prime property prices are significantly lower than in most major cities around the world.
Haider Ali Khan, CEO of Bayut and head of Dubizzle Group Mena, stated that despite ongoing global uncertainties, Dubai’s real estate market remains promising, with current market trends, investment opportunities, and growth strategies instilling 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 stated that buy-to-let villas and townhouses in International City have an average ROI of more than 7%, making it an appealing option for potential investors. Similarly, Damac Hills 2 and The Valley provide investors with returns of more than 6%. Mid-tier villas in Jumeirah Village Triangle, JVC, and Mudon have projected ROIs ranging from 6% to 8%. The Sustainable City stands out in the luxury villa segment with a ROI of more than 7% due to the unique features of the properties and the limited market supply available. Al Barari and Tilal Al Ghaf offer robust ROIs of more than 6%.
Up to 17% jump in rents
According to Bayut’s data analysis, affordable apartment rentals rose from 1% to 17%, while mid-tier segment apartments increased by 12%. In contrast, luxury apartment rentals have dropped by up to 4%.
Reasonably priced villas have generally become cheaper by up to 3%, while rental houses in Mirdif have increased by 1% to 7%. Mid-tier villa rentals have seen increases ranging from 2% to 17%, with certain bed types in Jumeirah Village Circle (JVC) and Town Square reporting price decreases of less than 2%. Luxury villa rentals have increased by 13%, while four-bedroom homes in Al Barsha and Damac Hills have become slightly more affordable by 12% to 14%.
Deira and Al Nahda have emerged as popular apartment options, while Damac Hills 2 and Mirdif have sparked interest in villas. In the mid-tier segment, Jumeirah Village Circle (JVC) and Bur Dubai apartments have been in high demand among tenants, while properties in JVC and Arabian Ranches 3 have attracted villa-seekers. In the luxury category, Dubai Marina and Business Bay continue to be popular apartment rental destinations, while Dubai Hills Estate and Al Barsha are popular 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.
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