According to the latest analysis by Bayut, apartments in Dubai Investments Park, Discovery Gardens, and Liwan provide the highest rental returns in the affordable category, yielding up to 11 percent. Dubai Sports City, Dubai Silicon Oasis, and Motor City are also notable for their attractive investment potential, offering rental yields of up to 10 percent. Bayut's first-quarter analysis highlights that Green Community, Al Sufouh, and Damac Hills are delivering over eight percent in rental returns, exceeding the performance of most global markets.
Furthermore, these Dubai localities offer significantly higher rental yields compared to major global cities like London, New York, Hong Kong, and Mumbai, where average returns typically range from four to seven percent. Additionally, prime property prices in these Dubai areas are considerably more affordable than in many of the world's leading cities.
Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, remains optimistic about Dubai's real estate market despite global uncertainties. He believes the current market trends, investment opportunities, and strategic growth initiatives continue to instill confidence among stakeholders in this dynamic environment. Khan highlighted the development of new master communities and innovative off-plan projects as key indicators of Dubai's enduring appeal and resilience as a real estate hub.
"As we navigate the challenges and opportunities that lie ahead, fostering collaboration and strategic planning will be crucial for maximizing returns and ensuring sustainable growth in Dubai's real estate sector,"
Khan stated.
Bayut has reported that buy-to-let villas and townhouses in International City are generating an average return on investment (ROI) of over seven percent, making it an attractive option for investors. Additionally, Damac Hills 2 and The Valley are also yielding favorable returns, with ROI of over six percent. For mid-tier villas, locations such as Jumeirah Village Triangle, JVC, and Mudon are offering projected ROIs between six and eight percent. In the luxury villa category, The Sustainable City stands out with an ROI exceeding seven percent, attributed to its unique property features and limited market supply. Furthermore, Al Barari and Tilal Al Ghaf are also presenting strong ROIs, each surpassing six percent.
Up to 17% jump in rents
According to Bayut's data analysis, affordable apartment rentals have seen a significant increase, with rates rising from one percent to 17 percent. Meanwhile, the mid-tier apartment segment has experienced a jump of up to 12 percent. In contrast, luxury apartment rentals have seen declines of up to 4 percent.
For villas, reasonably-priced rentals have generally decreased by up to 3 percent, though Mirdif has seen rental increases ranging from one to seven percent. Mid-tier villa rentals have shown growth between two percent and 17 percent, although specific bed types in Jumeirah Village Circle (JVC) and Town Square have faced slight decreases of under two percent. On the other hand, luxury villa rentals have surged by 13 percent, despite four-bedroom homes in Al Barsha and Damac Hills seeing reductions in price by 12 percent to 14 percent.
In terms of demand, Deira and Al Nahda are popular among those seeking affordable apartment accommodations, while Damac Hills 2 and Mirdif are drawing attention for villas. Jumeirah Village Circle (JVC) and Bur Dubai are highly sought after for mid-tier apartment rentals, with JVC and Arabian Ranches 3 appealing to villa-seekers. For luxury rentals, Dubai Marina and Business Bay continue to be top choices for apartments, whereas Dubai Hills Estate and Al Barsha are preferred for high-end villa rentals.
Bayut also noted a noticeable resurgence in the demand for family villas, reflecting a market shift towards larger, family-oriented residences, particularly within the luxury and mid-tier segments. This trend highlights a growing preference for more spacious properties and family-friendly living environments.
News Source: Khaleej Times
