Most popular bed types in Dubai for best ROI on buy-to-let properties
With a burgeoning property market and economy, the emirate of Dubai is a haven for real estate investors in search of properties with high rental yields. When choosing the best types of properties in Dubai for investment, most buyers consider the number of bedrooms to be just as important as the location. Divided into villa and flats, here are bed types popular for high returns in the city.
Property investment in Dubai: Best bed types for apartments
According to our data analysts, 1-BHK flats in Dubai are the most sought-after property types for rentals and sales. The next bed types in order of popularity are 2-bed, studios, 3-bed and 4-bedroom apartments. The fact that prices dropped across the Dubai real estate rental market in 2020 could also be why more investors are going for larger units.
Here is an overview of the communities where these bed types have the best rental yields:
1-bed apartments in International City
According to searches conducted by Bayut users, 1-BHK flats and studio apartments in International City top the list for most sought-after bed types regarding buy to let properties. The expat-friendly community by Nakheel features several low-rise clusters themed after countries like England, Greece and Morocco. Its location near renowned neighbourhoods like Dubai Silicon Oasis and Academic City also adds to its appeal for buyers and tenants.
With an ROI at 8.5%, 1-BHK units in the community rank first for Dubai’s best bed types. The average price to rent 1-bedroom apartments in International City is AED 28k per annum. On the other hand, 1-bed flats for sale in International City currently average at AED 327k. With property sales prices at an all-time low, now is the best time to make a property investment in Dubai, starting with this inclusive community.
Apart from 1-bedroom units, studios in International City, with a projected ROI at 8.3%, are also in vogue with buyers in Dubai. The studios for rent in International City have an average lease price of AED 19k. On the flip side, the average price of the studios for sale in International City is AED 231k.
Investors and prospective renters can also consider the pros and cons of living in International City before committing.
2 and 3-bedroom apartments in Green Community
When it comes to 2 and 3-bed flats, the community with the second-best ROI in buy-to-let properties in Dubai is the Green Community — apparent with a return on investment at 8.3%. True to its name, the residential area is one of the most beautiful and greenest in the city with landscaped gardens and well-planned districts. The eco-friendly development also earns praise for its proximity to Sheikh Mohammed Bin Zayed Road (E311), which offers residents easy access to the rest of Dubai.
Renting a 2-bedroom flat in Green Community can set tenants back an annual average of AED 87k. The average price for buying 2-bed flats in Green Community is at AED 1M, a bargain considering the addition of an extra room. A look at Green Community floor plans can give potential investors a better understanding of available layouts.
With an ROI at 9%, investors are also attracted towards the 3-bed units in the eco-friendly community. As for what buyers might be expected to pay, renting the mentioned bed type here costs AED 120k on average while sales prices are at AED 1.5M.
4-bed flats in Motor City
The 4-BHK flats in Motor City rank fifth for best types of properties in Dubai for investment with an 8.2% ROI. The average rents for 4-bed apartments in Motor City stand at AED 148k per annum. Those interested in buying flats in this configuration in the neighbourhood can expect to pay an average of AED 2.2M.
Best rental income in Dubai property: popular bed types in villas
Certain residential areas in the Dubai property market are popular for villa sales. Some of these areas like Dubailand also feature in our annual 2020 sales report for Dubai for affordable and luxury properties in the emirate. For those of you looking at investing in Dubai for buy-to-let properties, 3-bedroom villas will get you the maximum ROI:
3-bed villas in Dubai Industrial Park
At an ROI of 7.1%, the 3-bed apartments in Dubai Industrial Park are ahead in searches for villas in Dubai. A residential sector of Dubai Industrial City, the neighbourhood’s location near the Dubai and Abu Dhabi border make it ideal for those who commute between the two emirates regularly. The mixed-use development offers a range of homes for investment purposes, with the 3-BHK variety currently in demand.
It will cost a yearly average of AED 49k to rent this type of apartment in the community while the sales price is generally around AED 952k.
4-bed villas at Jumeirah Village Circle (JVC)
The next most popular bed-type for villas in Dubai are 4-bedroom units. Investors can look at the villas for sale in Jumeirah Village Circle which have a reported ROI at 6.4%. The famed family-friendly neighbourhood features a series of communities connected by canals and parks. Additionally, residents can also enjoy the area’s proximity to several leisure destinations like the Mall of the Emirates.
Tenants will find a large portfolio of 4-bed rental flats in Jumeirah Village Circle which they can rent for AED 112k on average. For buyers keen on making long term investments, the 4-bed apartments for sale in Jumeirah Village Circle cost an average of AED 2M.
5-bed villas at Mirdif
For those looking at investing in the Dubai real estate market with the intent of renting it out, 5-bed houses in Mirdif are good options with reported ROI at 6.8%. The villas here vary in design, layout and amenities with many having private pools, gardens and other perks. Additionally, the community also has some supermarkets for the convenience of residents.
The annual rent for 5-bedroom villas in Mirdif average at AED 114k. Furthermore, the average sales price for 5-bed houses in Mirdif stands at AED 4M.
2-bed villas in Dubailand
With 7.3% ROI, the 2-bed villas in Dubailand also herald good investment opportunities for investors in Dubai. Apart from homes, the massive tourist destination features around 50 attractions. Additionally, its proximity to reputed academic institutes also makes Dubailand perfect for families searching for forever homes.
Currently, the price to rent 2-bed houses in Dubailand cost a yearly AED 73k on average. Investing in 2-bedroom Dubailand villas will average at AED 983k
6-BHK villas in The Lakes
The 6-bed villas at The Lakes can be considered for property investments, with 4.9% projected ROI. The villa community is one of the many freehold developments in Dubai, which means that expat and international investors can purchase properties.
Listings for rental homes in this category are currently limited. They have an average price at AED 504k per annum. The 6-bed villas for sale in The Lakes cost AED 10M on average.
That is all we have on the best types of properties in Dubai for investment in real estate.
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