Guide to Profitable Areas in Dubai: Investments Depend on Personal Reasons

10:35 pm  |  13.02.2024

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: An Oasis of Calm in the Heart of the City

Jumeirah Village Circle is a small family neighborhood with an area of 8.7 km2, built according to a centric system. About 25,000 people permanently live here, preferring a calm environment, safety, and green areas.

Work on the project began in 2005, and today there are both fully built houses and constructions that have just begun.

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The general developer of JVC is Nakheel. Its main project is Nakheel Villas, a complex of villas located in the very center of the area. In addition to Nakheel, an important developer in JVC is Damac Properties, which is implementing luxury projects in Dubai, for example, the Emirates Gardens or DAMAC Hills residential complex.

It is also worth noting GHD Developments – a company with more than 100 years of history, their portfolio includes a residential complex project and a collection of premium townhouses La Perla in JVC.

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: A City Within a City

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. 

Here you can find both compact apartments and spacious villas and townhouses. There are even gated communities, for example, Al Habtoor townhouses are home to polo enthusiasts. According to statistics, the highest annual yield of 7.3% is shown by luxury three-bedroom apartments. 

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%.

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Dubai Creek Harbour: Waterfront Accommodation

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.

DAMAC Hills: Family Community

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.

While DAMAC Hills may lack a beachfront, it compensates with something more captivating: MALIBU Bay, a comprehensive complex for enjoyable leisure time. Here, you’ll find a swimming pool with surf effects, lifeguard towers, vibrant bars, a disco, beach volleyball courts, palm trees, and abundant greenery.

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.

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City Walk: Creative Cluster

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.

City Walk predominantly features mid-rise buildings housing apartments of various sizes and layouts. 

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.

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