Statistics reveal that the average rental yield in Dubai stands at 7%. This makes it an ideal location for the real estate market. Even if you are an expat, you can buy a property in Dubai, thanks to its expat-friendly policies. However, make sure to buy it in a freehold community if you want to own it completely, not just leasing it.
Once you have purchased a property, you can rent it out to earn a handsome ROI. But, it is important to note that the returns vary from area to area. There are some communities that offer better ROI as compared to others. You need to do research, and a lot of it, to find a community that offers high rental yield while ticking other boxes of making a sound real estate investment.
On this note, let’s take a look at some of the best communities in Dubai that offer a high rental yield:
Over the past few years, International City has emerged as a popular community for those looking to buy properties in Dubai. It is basically a mixed-use area that features clusters of low-rise residential buildings along with several commercial and tourism development centres. The architectural design of these buildings, particularly residential ones, is unprecedented. They are designed as per various cultural styles. Each cluster is given the name after its cultural design.
International City lies between Al Awir Road and Sheikh Mohammed Bin Zayed Road, in close proximity to Dubai Silicon Oasis. Academic City and Al Warqaa are other popular communities that are located nearby. Dubai Safari Park that is home to 2500 animals, birds and reptiles, is a popular tourist attraction that can be accessed conveniently from this area.
The area is suitable for the working class as the property rates here are affordable. The rental yield, on the other hand, is on the higher side. You can earn an 8.6% rental yield if you have purchased a property in International City and rented it out. Of course, many factors come into play here, such as the location, size and configuration of the property.
In total, there are 10 clusters in International City. These are:
Some of the popular residential projects you can choose from in International City are:
While the name suggests Dubai Sports City is for fitness fanatics, it is, however, much more than that. As a matter of fact, it’s a relatively calm and serene area and is perfectly suitable for families looking for an easy on the budget abode to settle. Having said that, the area is home to various sporting venues where athletic activities take place all year round. A huge number of sports academies and fitness facilities are located. On top of everything, Dubai Sports City also houses the International Cricket Council (ICC)’s headquarters.
Dubai Sports City is located on Sheikh Zayed Road. Popular communities Jumeirah Golf Estates and Dubai Marina can be accessed conveniently from this area.
The community, as stated above, is suitable for singletons, couples and families, apart from sports and fitness enthusiasts. With rental yield up to 7.8%, it also makes for an ideal choice for those looking to buy properties for renting them out. However, those who are fond of enjoying the hustle and bustle of city life may not like living in Dubai Sports City.
When it comes to residential options, you can find apartment complexes and villa compounds in this community. Residences in varying configurations are available here to meet the needs of individuals, couples and families. The area is divided into three districts, namely:
Some of the most popular residential projects in this community are:
More famous as JBR, it is a beach-side area that features a 1.7km long shoreline. Part of Dubai Marina, JBR is one of the most popular residential areas in the entire emirate. From top-notch residential developments and recreational centres to tourist attractions, this waterfront community has it all. It is a self-contained community that’s famous for its architectural marvels, crystal clear water views and white sandy beaches.
Nestled between the sea and Dubai Marina, JBR enjoys a prime location in the emirate. It is linked to Bluewaters Island and houses several top attractions. The residential area of Dubai Marina, Downtown Dubai, DIFC and Palm Jumeirah are some of the popular localities easily accessible from JBR.
JBR is more suitable for families looking for a waterfront lifestyle. Residential projects in this area have moderately sized apartments that cater to the needs of young couples and small families. Investors can expect to earn a rental yield of up to 6.61%.
JBR mostly features studios and apartments in high rise buildings. These buildings are spread over six clusters, namely:
You can find residential units in different layouts and configurations in these buildings.
Last on our list of best communities with the highest rental yield, Business Bay is a trendy neighbourhood featuring various commercial and residential developments. It is expected to become the central business hub of Dubai in the time to come. This community overlooking Dubai Canal is famous for the modern, faced-paced lifestyle it offers.
It is a self-contained community and has also become a popular tourist hotspot – thanks to the Dubai Canal. You can find here top-notch residential projects laced with modern amenities, perfect for living a luxurious lifestyle.
Nestled on the southern side of Downtown Dubai, Business Bay is a well-connected, easy to reach community. It can be accessed via Al Khail Road and Sheikh Zayed Road. Popular communities such as Dubai Marina, International City, Dubai Marina, Dubai Design District and Jumeirah are located close to Business Bay.
Business Bay is suitable for small families, couples and professionals because of its active and quick-paced lifestyle. Landlords can expect to earn a rental yield of 6.28% if the property occupies a prime location and provides residents with luxurious amenities.
Business Bay consists of modern residential developments featuring state of the art apartments in varying configurations, including 1, 2 and 3-bedroom units. 4-bedroom lavish penthouses are also available here. Furthermore, there’s also a limited selection of villas. These properties come with modern facilities and luxuries.
These are some of the most popular residential projects in Business Bay:
Apart from the aforementioned ones, Arabian Ranches, Downtown Dubai, Dubai Marina, Jumeirah Lake Towers (JLT) are other residential areas known to offer a high rental yield.