Dubai leaves residents spoilt for choice in almost every aspect, whether it’s in luxurious shopping malls, restaurants, entertainment options, cars and homes. Homes in Dubai leave you stunned and the choice for a home becomes increasingly difficult as lots of properties are and have been developing super-fast in the last couple of years.
From off-plan property to ready to move in property, there are thousands of options to choose from. The property market in Dubai is to an extent segregated based on income groups and lifestyles, with a lot of working class, average income residents choosing to live inexpensively in areas like Jebel Ali, International City, Silicon Oasis, International Media Production Zone and a few others. For those who can afford more extravagant homes, they are spoilt for choice. Apartments in Bluewaters, Villas in Arabian Ranches, underwater sea homes off the Palm you name it. However in terms of rental returns, Dubai offers the best. Following this a short list of the properties currently providing the highest rental yields in Dubai.
- RemRaam 6%
- International City 8.2%
- Downtown Dubai 6.3%
- Sports City 6%
- Discovery Gardens 9.3%
- The Greens 7.5%
- Dubai Marina 7.4-8.1%
- Jumeirah Beach Residence 8.0%
- City Walk 5.8%
In townhouse and villa options
- Town Square 7.8%
- The springs 6%
- Reem-Mira 4%
- Mudon 3%
- Jumeirah Village Circle 2%
- Palm Jumeirah Signature Villas (2-4%)
- Mohammed Bin Rashid City (2-4%)
- Jumeirah Islands (2.4%)
As the long awaited Expo 2020 event approaches us, there is and will continue to be an increasing demand for short term rentals and these types of rentals are resulting in 25-40% higher yields than traditional longer-term rentals. The Expo expects to create an astonishing number of around 300,000 new jobs which will further drive the demand upwards for homes, especially rentals since these people will be coming to Dubai, to work uncertain of permanent residency plans towards the future. It is important to also note that such intake of new working class individuals will likely choose popular locations like International City, Emaar South or Jebel Ali that are affordable and accessible.
University students looking for affordable housing (in comparison to expensive dorms) will also drive demand up as there are places like Uni Nest that cater to such niches. There are a few student friendly living areas coming up, which will prove very profitable properties and beneficial for both parties.
In addition to this, we understand that investing in property is one of the first investors aims on the list. Investing in property results in really good capital gains and is therefore the reason a lot of investors also become landlords after they rent out properties to others. Specifically in the areas listed above, rental gains can be very consistent and high making it an attractive side income option.
Another way specific rental pays a lot is allowing designer homes to be rented out for events. There is a growing trend for hosting small events in the comfort of a private residence and with designer villas, signature villas and other remarkable options, a lot of clients opt to rent them out, to clients willing to pay larger amounts in order to host private parties and events in someone’s home.
Allowing for a relaxed event without any commercial factors such as time constraints, rules getting in the way. In addition to hosting events, scenic homes in Dubai are also popular holiday Apartments destinations doubling its attractiveness for tourists and visitors hoping to rent a home and enjoy a holiday, away from the all too familiar hotel experience.
Therefore, keeping in mind that there is a home for every budget and lifestyle, it is a good option to invest in property and put it up for rent with the aim of earning additional side income and getting a return on investment.