Best Rental Yields in Dubai
According to Bayut’s latest analysis, Dubai Investments Park, Discovery Gardens, and Liwan offer the best rental returns, with yields reaching up to 11% for affordable property buyers.
Other attractive options include Dubai Sports City, Dubai Silicon Oasis, and Motor City, which provide up to 10% return on investment (RoI) for apartment rentals. In the first quarter, Bayut reported that Green Community, Al Sufouh, and Damac Hills exceeded 8% rental returns, outperforming many global markets.
These Dubai neighborhoods have significantly higher rental yields compared to major cities like London, New York, Hong Kong, and Mumbai, where returns typically range from 4% to 7%. Additionally, prime property prices in Dubai are considerably lower than in most major cities worldwide.
Haider Ali Khan, CEO of Bayut and head of Dubizzle Group MENA, highlighted Dubai’s resilient and promising real estate market. Despite global uncertainties, the city continues to attract investment with new master communities and innovative off-plan developments. Khan emphasized the importance of strategic planning and collaboration to maximize returns and ensure sustainable growth.
For villas, buy-to-let options in International City offer an average ROI of over 7%, appealing to investors. Damac Hills 2 and The Valley also provide returns exceeding 6%. Mid-tier villas in Jumeirah Village Triangle, JVC, and Mudon have projected ROIs ranging from 6% to 8%. The luxury villa segment in The Sustainable City stands out with over 7% ROI, thanks to its unique properties and limited supply. Al Barari and Tilal Al Ghaf offer strong returns of more than 6%.
Rental Trends and Market Demand
Bayut’s data analysis shows affordable apartment rentals rose by 1% to 17%, while mid-tier segment apartments increased by 12%. Luxury apartment rentals, however, dropped by up to 4%. Prices for reasonably priced villas generally decreased by up to 3%, while rental houses in Mirdif rose by 1% to 7%. Mid-tier villa rentals increased by 2% to 17%, with some properties in JVC and Town Square seeing minor price decreases. Luxury villa rentals increased by 13%, although four-bedroom homes in Al Barsha and Damac Hills became more affordable by 12% to 14%.
Deira and Al Nahda have become popular choices for apartment rentals, while Damac Hills 2 and Mirdif are in demand for villas. In the mid-tier segment, JVC and Bur Dubai apartments are highly sought after, with JVC and Arabian Ranches 3 attracting villa-seekers. For luxury properties, Dubai Marina and Business Bay remain top apartment rental destinations, while Dubai Hills Estate and Al Barsha are favored for high-end villa rentals.
Bayut notes a resurgence in demand for family villas, with a growing preference for larger, family-oriented residences in luxury and mid-tier communities. This trend indicates a shift towards more spacious properties and family-friendly living environments.