Dubai is one of the most popular cities in the world for real estate investment, offering a wide range of properties from opulent villas to budget-friendly studio apartments. However, not all areas of Dubai are created equal when it comes to rental yields.
While rental yield isn’t the sole factor to consider when investing in Dubai, it undoubtedly plays a pivotal role when making an investment in the thriving Dubai real estate market. And, there’s no denying that the emirate globally excels in offering high rental yields compared to other major global cities, like New York, or Hong Kong. Let’s explore the best places to invest in Dubai for high rental yields, with insights from leading property data provider, Reidin.
Dubailand is a vast residential development and investment hotspot by Dubai Properties. This location is one of the most sought-after residential locations in Dubai with buyers showing preference for the newly developed, affordable suburbs to more established areas. Today, Dubailand sprawls across 3 billion sqft, divided into several high-yielding districts including Remraam (8.1%), Liwan (7.8%), Arjan (6.6%), and Akoya by Damac (6.6%).
- Dubai Silicon Oasis
Dubai Silicon Oasis is an amenity-packed suburb, offering a holistic living experience. That said, DSO is also recognized as one of the most affordable and well-connected communities in Dubai. As a result, there has been a huge surge of people, particularly first-time buyers, moving there to take advantage of the convenient amenities, reasonable price tags, and fast growth, given that it’s one of the five major centers of Dubai’s 2040 Urban Master Plan. DSO remains one of the top-performing areas for net returns in Dubai, as investors can expect an average rental yield of 7.3%.
Dubai Silicon Oasis is a high-yielding area, popular among those looking to invest in Dubai real estate.
- Dubai Sports City (DSC)
Dubai Sports City is a unique area to invest in Dubai, offering a wide range of budget-friendly living within a staggering 50 million sq ft. As the name suggests, it’s a sports-centric neighborhood with good schools, sizable apartments, great road connectivity, and a large number of sports venues. DSC remains an incredibly affordable place to invest in Dubai with great yield rankings across all bedrooms, with an average net rental yield of 7.3%.
- The Greens/The Views
Nestled between Emirates Golf Club and Barsha Heights, this peaceful Emaar community boasts a glittering lake that separates The Greens and its neighboring more high-end development, The Views. The Greens and The Views are known for their high-quality construction, stunning greenery, international schools, five-star hotels, and excellent amenities. For that reason, this area tends to attract more long-term residents, with The Greens boasting a rental yield of 7.1% to investors, while investments in The Views yield a solid average of 6.7%.
- Jumeirah Lake Towers (JLT)
Built around 4 picturesque lakes, Jumeirah Lake Towers is a densely populated business hub that blends residential and commercial real estate. Considering JLT has similar amenities to its neighbor, Dubai Marina, it’s become a popular area for more affordable Dubai investment properties. Not to mention, JLT is a well-connected development, situated between two metro stations, Jumeirah Lake Towers and Damac Properties. The potential net rental yield in JLT stands at an impressive 7.1%, depending on the property type and location within the area.
- Jumeirah Village Circle (JVC)
Another area known for its affordability, Jumeirah Village Circle is a fast-developing area located in the heart of New Dubai. JVC consists of an abundance of green parks, modern amenities, and a family-friendly community. The area has witnessed significant growth and offers lucrative long-term and short-term rental opportunities considering the high demand to buy property in Dubai, namely JVC. Investors in Jumeirah Village Circle can expect an average rental yield of 6.8%.
SmartCrowd recently successfully exited a JVC townhouse with exceptional returns of 47.30% over 39 months.
- Dubai Marina
A mature waterfront community, Dubai Marina is one of the most sought-after cosmopolitan areas in Dubai and is home to over 200 residences, with stunning marina views, proximity to commercial hubs, like the nearby Walk at JBR, Bluewaters Island, and the Dubai Harbor. Dubai Marina has become one of the best areas to buy short-term rentals or holiday homes, as tourists tend to gravitate to such areas. Its convenience also makes it an attractive long-term investment option as well, with apartments in Dubai Marina yielding an average of 6.6%.
So, why invest in Dubai for a high rental yield?
Dubai’s appeal goes beyond just high rental yield potential. Investment properties in Dubai are cheaper per square foot than many other places in the world. In addition to this, the absence of many typical property taxes such as stamp duty land tax and capital gains tax makes the Dubai real estate market a very appealing space for real estate investors. Plus, if you buy property in Dubai, you can enjoy residency benefits, including the Golden Visa.
In conclusion, Dubai is home to a wide range of options for those looking to purchase a rental property. Of course, there are numerous other high-potential areas to consider, such as Downtown Dubai, Business Bay, and Palm Jumeirah, among others. It’s also important to conduct thorough research and work with a reputable real estate agent or platform to identify the best investment opportunities in Dubai.
SmartCrowd is one such platform that gives you access to carefully vetted properties in Dubai. Our platform does all the work, so you don’t have to! We narrow down the properties only to desirable areas that typically yield higher return on investment (ROI) for investors. That’s why our properties have consistently outperformed the market. What’s more, our real estate crowdfunding model allows you to invest in as many properties as you like, so you can spread your risk and diversify your portfolio with a mix of luxury and affordable rentals in Dubai.
Disclaimer: This blog is intended solely for educational purposes and shouldn’t be treated as financial advice. We suggest you always conduct thorough research, perform your own due diligence, and consult with financial advisors to assess any real estate property against your own financial goals.