With so many new areas popping up and around Dubai, it can prove to be quite intimidating as a first-time investor. Even though according to Property Monitor, the rental yields overall have declined by a minimal 0.20%, you can still benefit from an attractive rental yield of 6.23% YTD on average. With prices flattening, capital appreciation at this point might be less, but we expect long term gains leading up to 2020. The flattening of prices, excellent payment plans, developer reputation, demand, rental yields, and location are our main criteria for the selection of these projects.
We at Luxhabitat have come up with our top 10 best areas to invest in:
1. Dubai Sports City Apartments
Dubai Sports City located on Mohammed bin Zayed road is a50 million square feet sports complex that's perfect for the most sportive people in Dubai. It's home to five major sporting venues. Dubai International Cricket Stadium, Rugby Park and the Els Golf Course are some of the favourite venues, and this location is also home to the exclusive villa community at Victory Heights. Our research reveals that given the market conditions, a Dubai Sports City Apartment could result in up to 9.17% of rental returns annually. Price-wise, the value of the properties have declined over the past 6 months by 1.90%.
2. Dubai Silicon Oasis Apartments
Located near Academic City, which is home to several schools and colleges; Dubai Silicon Oasis is a favourite for student accommodation. It has a pretty vibrant neighbourhood too, complete with restaurants, supermarkets and more. With a rental yield of 8.66%, YTD, this might also be the right opportunity to purchase a property here as prices have slashed by 3.58% over the past 6 months.
3. International city
With its country-themed architecture, International City developed by Nakheel is a popular area for the working class. Developed by Nakheel, it still remains a hot area for rental yields at 8.56% YTD. Prices have also declined by 2.58%.
4. Jumeirah Village Triangle Apartments
Developed by Nakheel, Jumeirah Village Triangle (JVT) is very well located. It's within 15-20 minutes to the Dubai marina, which makes it a convenient location. The entire area is still under development, but that doesn't stop it from fetching a 8.45% YTD rental yield. Prices have declined by 2% over the past 6 months.
5. Discovery Gardens
A very popular area for young working professionals, Discovery Gardens unit owners can now benefit from a healthy rental return of 8.39% YTD. The area is in close proximity to Ibn Battuta mall and has an array of parks and restaurants within the area. It also has seen a decline in prices up to 2.51% over the past 6 months.
6. Dubai Investments Park - Apartments
Dubai Investments Park (DIP) is designed to be one of the best communities in the city. It's designed to be environment friendly and has residential, commercial and industrial zones. The area also has several restaurants, clinics and supermarkets. It currently has a rental yield of 7.93% YTD. Prices have declined over the past 6 months by approximately 2%.
7. Jumeirah Village Circle Apartments
Jumeirah Village Circle (JVC) is a vibrant up and coming community in the area. There are several projects located here by Ellington which are of a really high quality, including Belgravia 1,2 &3 as well as Belgravia Heights. Other high quality developments include Hameni by Zaya. Current rental yields are at 7.92% YTD.Prices have declines in the past 6 months by 1.83%.
Located in Dubailand, this area seems to have some potential, even though it lies largely underdeveloped. Investors can still expect a rental return of 7.89% YTD. Prices have dropped by 2.02% in the past 6 months. However, at 678 AED / sqft, it requires far less capital unlike some other options on this list.
Also known as International Media Production Zone (IMPZ), this area is mainly known to provide accommodation for creatives. It is also in close proximity to a shopping mall and has plenty of dining options available. Rental yields are currently at 7.88% YTD. Price decline is at 1.08%.
10. Dubai Residence Complex
This community is located quite close to the Villa community. It commands a rental return of 7.88% YTD. Prices have declined by 2.28%.