The stability and profitability of real estate investments in Dubai largely depend on the choice of location. In this guide, we will compare several well-known areas and analyze where it is most profitable to purchase real estate.
Jumeirah Village Circle (JVC) is in demand among active businessmen and families with children. Therefore, property owners in this area have no difficulty finding long-term tenants. There are no crowds of tourists or noisy promenades in Jumeirah Village Circle, but there is good infrastructure here: cozy parks, schools and kindergartens, medical facilities, shops, and restaurants.
The popular Mohammed Bin Zayed, Barsha, and Al Khali roads are also nearby. From your home, you can travel just 20 minutes to the Dubai Exhibition Center 2020, as well as famous destinations such as Palm Jumeirah and Dubai Marina. Although the area is considered luxury, prices here are significantly lower than in Dubai Marina, making it an attractive investment (especially if you are interested in townhouses or villas).
In terms of the number of transactions, Jumeirah Village Circle is second only to Dubai Marina and Downtown. The average cost per square meter is $3,750, and the yield remains at 5.8%.
Dubailand has everything you need for a comfortable and eventful life – theme parks, stadiums, shopping centers, a race track with karting tracks, and even a venue for the largest fair in the world. This area attracts investors with its variety of properties, and tenants appreciate the opportunity to choose housing depending on their budget.
Two-bedroom apartments yield an average of 6.9% per annum. Studios and apartments with four bedrooms have lower yields – about 6% per annum. Finally, one-bedroom apartments yield a return of 5.9%.
This prestigious area with luxury real estate combines privacy, proximity to the coast, and a convenient location to all the city’s key amenities. Here you’ll find an island park, promenade, creek beach, and 81-berth yacht club, as well as fine dining with stunning views of the Burj Khalifa. This area is preferred by those who want to be at the center of events, mainly active managers and promising entrepreneurs.
The main development of the area consists of modern high-rise buildings with private swimming pools, spa areas, fitness centers, games, and tennis courts. A new wonder of the world may arise here – the Dubai Creek Tower – with hotels, shops, and restaurants that will surpass the legendary Burj Khalifa. At the foot of the tower, there will be a shopping and entertainment complex, which will surpass even the Dubai Mall in size. This will make the area even more attractive to tourists and residents of Dubai.
Currently, real estate in the area generates returns in the region of 5% per annum, with the average cost of one-bedroom apartments being $535,000 and three-bedroom family residences costing $980,000.
This gated residential community, located approximately 10 km from the center of Dubai, offers a private, relaxed lifestyle. The project includes three phases, the last of which is scheduled for completion in 2025. Arabian Ranches is home to the largest golf club in the UAE, but lovers of a quiet life, as well as golf lovers, prefer to live here. All houses are designed in classic Mediterranean and Arabic style. A variety of amenities are available to frontline residents, including a cricket pitch, tennis courts, and a large central park. In the future, there will be a large shopping center and a 4 km long boulevard with a lazy river, cafes, and restaurants. Today, townhouses and houses in Arabian Ranches are among the most sought-after gated communities in Dubai.
However, the rental yield here is slightly lower than that of more affordable real estate. The average yield for two-bedroom apartments is around 6.5%, for three-bedroom houses around 5.8%, and for four-bedroom townhouses around 5.4%.
DAMAC Hills stands out as one of the finest areas for a serene family life and for those who appreciate nature. The infrastructure is already well-established with supermarkets, schools, hospitals, fitness centers, and even a motorcycle city. Moreover, there are numerous green parks and spaces for sports activities.
Properties in DAMAC Hills offer excellent value for money, boasting quality interior finishes and infrastructure. Investing in property in this location is a lucrative prospect for the future. The average price of a townhouse here is $680,000.
Al Barsha, a modern and relatively new district, is divided by the Al Khalil highway into two equal parts. Its primary advantage lies in its excellent transport accessibility: surrounded by two main transport arteries, Sheikh Mohammed Bin Zayed Road and Sheikh Zayed Road. The area also benefits from well-developed public transport, including a high-speed metro station – Mall of the Emirates, providing easy access to public beaches.
Characterized by uniform development and a tranquil atmosphere, Al Barsha offers a plethora of parks, recreational areas, shops, kindergartens, and medical institutions, ensuring a comfortable lifestyle. An attractive feature is the Mall of the Emirates, one of the world’s largest shopping centers, featuring the indoor ski resort Ski Dubai. Additionally, Al Barsha boasts the renowned Miracle Garden botanical garden and butterfly park, the largest in both the UAE and the world.
Here, you can purchase a studio apartment at an average price of 500,000 dirhams, one-bedroom apartments for approximately 800,000 dirhams, and three-bedroom apartments for 1,100,000 dirhams. These prices are affordable, and rental yields may surpass those in other areas (e.g., up to 8% per annum for studios).
City Walk emerges as one of Dubai’s most vibrant and creative districts, where contemporary art thrives. Situated near the Burj Khalifa, with popular beaches within walking distance, City Walk offers pedestrian boulevards and pathways that provide convenient access to Jumeirah. The Dubai Mall is just a 20-minute stroll away. Given the constant influx of tourists, demand for short-term rentals remains high year-round.
One-bedroom apartments are particularly sought after, boasting a rental yield of approximately 6% per annum. However, larger units tend to exhibit lower profitability ratios.