Dubai is famous for its investment appeal, but often the spotlight falls on the same well-known areas that everyone talks about and aspires to explore. However, within this dynamic and rapidly evolving city, there exist lesser-known gems, where the potential for comparable or even superior returns on investment is ripe.
Given Dubai’s youthful, diverse, and ever-changing nature, selecting an apartment entails a closer look at its location and future prospects. The profitability of your investment is closely tied to rental income or resale.
READ: Investment Opportunities in Dubai Real Estate: Relevant Tendencies
Let’s delve into five lesser-explored areas of Dubai, each holding the promise of substantial returns. Additionally, we’ll shed light on the unique features that make each of these areas attractive.
The Dubai Islands, an archipelago comprising five islands, is poised to transform into a vibrant residential hub by 2026. Envisioned as a comprehensive development, it will boast its own mall, 20 km of pristine coastline, several yacht marinas, 5-star hotels, schools, and a sprawling art center.
The inaugural residential project on the Dubai Islands, named Haven, serves as an indicator of potential returns on investment. Apartments in this complex start at $438,000. Projections include an expected rental yield of 7% per annum and a 35% price increase upon delivery.
Mina Rashid emerges as a formidable competitor to Dubai Marina, offering a distinct advantage with half the price per meter. Notably, it’s just a 10-minute drive from the iconic Burj Khalifa.
Emaar, one of the largest state-owned developers in the Emirates, is orchestrating the construction. Emaar’s projects are renowned for their swift sell-outs, exemplified by entire buildings being booked in a mere 11 seconds. Consequently, swift action is advised for those considering investment.
For those seeking seaside property without the hefty price tag and a mere 20 minutes from the city center, Maritime City emerges as a compelling alternative to Dubai Marina. Anticipating an influx of tourists drawn by future 5-star hotels, restaurants, and a planned marina, the area’s appeal is set to rise. The upcoming metro connection further adds to its allure.
READ: Manhattan Real Estate: Types and Features
Despite being relatively unknown, Town Square offers a unique proposition. Positioned away from the coastline and less suitable for short-term rentals, it excels in the long-term rental market. Boasting lush landscaping, well-thought-out layouts, and low-rise buildings, it provides an ideal setting for families. The area features a comprehensive children’s infrastructure, from trampolines to a skating center, complemented by a spacious park.
Dubai South, a lesser-known locale, plays a crucial role in Dubai’s 2040 master plan for enhancement. As Al Maktoum Airport prepares to open, creating 200,000 jobs, major corporations are poised to relocate their headquarters, propelling Dubai South into a pivotal position as a business and service hub. This transformation is expected to generate robust demand for new real estate in the area.
While the distance from the city center is a drawback, Dubai South compensates by providing comprehensive amenities for residents, including a shopping center, metro access, and a well-developed entertainment infrastructure. Notably, the site of the Expo 2020 exhibition is being transformed into an eco-town, with 60% green coverage.
READ: Sea Next to Your House: 5 Tips to Choose the Right Property in Dubai
Presently, at least five high-yield areas in Dubai remain relatively undiscovered by most investors. With a comparatively low cost per square meter and minimal competition, these areas offer lucrative investment potential. For those contemplating an investment, considering one of the listed areas is recommended. As construction concludes over the next couple of years, significant price surges are anticipated in each of these promising locations.
