Investors wishing to make the most money on UAE’s rental properties should pay close attention to places such as Dubai Marina and International City.
According to Bayut.com, properties in these areas provide the most enticing return on investment within the luxury and budget divisions.
Residential units in Dubai Marina are expected to offer the highest rental return for luxury apartments. At the same time, flats in International City are forecast to deliver the highest returns in the budget class at 9.22%.
Jumeirah Village Circle will be worth considering for those looking for affordable villas as it has produced the most alluring ROI of 6.9% in 2022.
Houses in the area have provided the “healthiest” rental yields of 6.95%, making DAMAC Hills a viable choice for those looking at buy-to-let villas.
Appealing Location
The UAE is a desirable investment location due to the nation’s comparatively cheap tax structure, alluring sales prices, high tenant demand, high-quality infrastructure and way of life.
Rents for apartments and villas have increased significantly since 2022 due to the high demand.
Asking rentals for apartments increased by 39% alone in Dubai Marina. Currently, the average rent in the region for a one-bedroom apartment is AED91,000 (USD 24,775); for a two-bedroom apartment, it’s AED140,000, and for a three-bedroom house, it’s AED207,000.
For potential purchasers looking for luxury residences, Dubai Marina has become one of the most sought-after areas.
According to Bayut, other well-liked areas in Dubai include Downtown Dubai, Arabian Ranches, and Dubai Hills Estate.
Spending Segment
The cost of renting a flat has dramatically increased in Jumeirah Village Circle, a desirable location for tenants in the lower income bracket, by 14% to 24% in 2022.
In 2022, renters were required to pay, on average, about AED36,000 for a studio apartment, AED51,000 for a one-bedroom apartment, and AED 73,000 for a two-bedroom apartment.
Three-and five-bed apartments in DAMAC Hills 2 now cost about AED63,000 and AED98,000, respectively, due to a 9% increase in rent. According to Bayut, annual rates for four-bed homes “became more affordable” by 5.3%, with an average of AED74,000 in 2022.
According to Bayut’s estimates, sales prices for housing properties in Dubai’s most prestigious neighbourhoods will rise by 2% to 24% in 2022.
The real estate market has “outperformed expectations over the last year, as evidenced by record-breaking transactions, appealing new launches, and favourable investment opportunities,” Bayut added.