High ROI areas in Dubai: A smart investor’s guide
With its thriving real estate market, Dubai has long been a hotspot for property investors seeking high returns on investment (ROI). The city’s strategic location and strong rental market demand make it an attractive destination for savvy investors. In this comprehensive guide, we shall explore areas with the best ROI for apartments and villas in Dubai, providing valuable insights for fruitful investment decisions.
HIGH ROI AREAS FOR APARTMENTS IN DUBAI
When assessing the high ROI properties in Dubai, it is crucial to consider factors such as rental yields, capital appreciation and potential for long-term growth. In Dubai, rental yields for apartments typically range from 8.5% to a little over 11%, making it an attractive market for rental income. Capital appreciation has also been consistently strong, with property values increasing steadily.
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So, which areas with the best ROI in Dubai for apartments and villas have made it to our list? Let’s find out.
Living Legends
- Living Legends is a gated residential development in Dubailand with villas and apartments.
- Property types available include deluxe villas and studio to 3-bed apartments.
- ROI for apartments for sale in Living Legends is an impressive 11.06%, making it the area with the highest ROI in Dubai for apartments.
Liwan
- Ideally located near the intersection of Sheikh Mohammed Bin Zayed Road (E311) and Dubai – Al Ain Road (E66), Liwan is best known for its affordable properties.
- Apartment types available include studio to 3-bed units.
- Several low to mid-rise towers offer apartments for sale in Liwan with a projected ROI of 9.38%.
Green Community
- Attracting nature lovers for its serene and eco-friendly surroundings, Green Community is third on the list of areas with the best ROI for apartments and villas in Dubai.
- You can find studio to 3-bed apartments in the area besides villas.
- The rental yield offered by apartments for sale in Green Community is 9.04%.
Remraam
- Moving forward with the areas with the best ROI for apartments and villas in Dubai, we have Remraam positioned near the intersection of Emirates Road (E611) and Hessa Street (D61).
- This Dubai Properties project has two communities – Al Ramth and Al Thamam dominated by low to mid-rise apartment towers.
- Apartments for sale in Remraam include studio to 3-bed units. The ROI offered is 9.03%.
Discovery Gardens
- Close to Sheikh Mohammed Bin Zayed Road (E311), Discovery Gardens is a popular family-friendly area.
- This Nakheel development offers studio to 2-bed apartments in six garden-themed clusters: Contemporary, Cactus, Zen, Mediterranean, Mogul and Mesoamerican.
- Apartments for sale in Discovery Gardens offer an 8.93% return.
Dubai Silicon Oasis (DSO)
- Located at the intersection of Dubai-Al Ain Road (E66) and Sheikh Mohammed Bin Zayed Road (E311), Dubai Silicon Oasis is popular for its variety of residential properties, including apartments and villas.
- Apartments for sale in DSO are distributed across mid to high-rise towers. You can choose from studio to 3-bedroom units.
- The ROI offered is 8.85%.
Town Square
- Next among areas with the best ROI for apartments and villas in Dubai, we have Town Square.
- Located along Al Qudra Road (D63), it is a vibrant mixed-use community known for its apartment complexes, villas, townhouse clusters and beautiful parks.
- Investors and buyers will find studio to 3-bedroom apartments for sale in Town Square. The ROI offered is 8.83%.
Motor City
- Home to Dubai Autodrome, Motor City also makes it to the areas with the best ROI in Dubai for apartments and villas.
- Apartments for sale in Motor City are available in Uptown Motor City and Green Community Motor City. The choice of layouts includes studio to 4-bed units.
- The projected ROI stands at 8.78%.
Al Furjan
- Al Furjan is another popular family-friendly development by Nakheel, offering apartments and villas in serene surroundings.
- You can find studio to 3-bedroom apartments for sale in Furjan; most developments are relatively new, adding to the neighbourhood’s increasing appeal.
- The expected ROI is 8.52%.
Al Quoz
- Rounding off our section on the area with the highest ROI in Dubai for apartments, Al Qouz is a massive mixed-use development divided into residential and industrial sub-districts.
- Residential areas in Al Qouz have low to mid-rise buildings offering studio to 3-bed apartments. You can also find spacious villas in the larger community.
- Apartments for sale in Al Qouz offer an 8.50% ROI.
WHERE CAN YOU GET THE HIGHEST ROI ON VILLAS IN DUBAI?
Despite the many myths, there is no hidden secret to successful property investment. The key is to analyse the data and then make a calculated decision based on historical trends.
Here at Bayut, our data analysts have crunched the numbers and identified the areas offering the highest ROI on villas in Dubai. The results of the extensive analysis will also be helpful for people looking to upgrade from apartments to villas in Dubai.
Here are the areas where buying a villa will likely be financially fruitful due to the lucrative ROIs.
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Al Rashidiya
- One of the oldest districts in Dubai, Al Rashidiya, offers villas and apartments.
- Villas for sale in Al Rashidiya are available in 3 to 6-bed configurations.
- Investors can expect a 9.80% ROI.
Al Barari
- The scenic community of Al Barari is a highly sought-after area for both residents and investors.
- Its luxurious lifestyle offerings, green spaces, landscaped gardens, natural lakes and freshwater streams make it a desirable destination.
- Villas for sale in Al Barari are available in 4 to 6-bed layouts, generating an 8.58% rental yield.
The Valley
- The Valley is a relatively new villa development launched by Emaar Properties.
- You will find both off-plan and ready villas for sale in The Valley in 3 to 5-bedroom layouts.
- The expected ROI is 8.29%.
The Sustainable City
- The Sustainable City is a popular eco-friendly community in Dubai with five residential clusters.
- Villas for sale in The Sustainable City are mainly available as 3 to 5-bed units.
- Investors and buyers can expect 8.22% returns on their investments.
Al Twar
- Al Twar is a residential community near Dubai International Airport, offering spacious 3 to 7-bed+ villas.
- Villas for sale in Al Twar are distributed across the three sub-communities: Al Twar 1, Al Twar 2 and Al Twar 3.
- The expected ROI for villas in Al Twar stand at 7.95%.
Jumeirah Village Circle (JVC)
- Jumeirah Village Circle (JVC) is a Nakheel development, well-known for its strategic location, impressive property portfolio and communal amenities.
- You can find 3 to 5-bed villas for sale in JVC, besides apartments and townhouses.
- The expected ROI is 7.37%.
International City
- International City is one of the most affordable areas in Dubai.
- While its best known for its country-themed apartment clusters and low-rise buildings, you can find villas for sale in International City in 3 and 4-bed layouts.
- Houses here generate a projected rental yield of 6.87%.
Serena
- Serena is a family-friendly community by Dubai Properties known for its spacious villas and serene environment.
- The development consists of three phases: Bella Casa, Casa Dora and Casa Viva. Villas for sale in Serena are mainly available in 2, 3 and 4-bed layouts.
- The rental yield for Serena villas is 6.82%, making it a promising investment option.
DAMAC Hills 2
- DAMAC Hills 2, with its exciting variety of villas, townhouses, and apartments, is redefining the concept of eco-friendly residential developments.
- The area boasts some of the most affordable properties in Dubai, attracting buyers and investors.
- Villas for sale in DAMAC Hills 2 have a rental yield of 6.77%. Property layouts include 3 to 6-bedroom units.
Town Square
- Wrapping up our list of areas with the best ROI for apartments and villas in Dubai is Town Square.
- The 3 and 4-bedroom villas for sale in Town Square are a lucrative investment option.
- Investors can expect a 6.73% ROI.
FAQs
WHAT ARE THE BEST AREAS TO BUY APARTMENTS AND VILLAS IN DUBAI?
Sale transactions for apartments in Dubai for the first month of 2024 totalled AED 18.4 Billion, starting things on a high note. Similarly, 1,495 sale transactions for villas in Dubai were recorded during the same period.
Whether you want to buy an apartment, a villa or an off-plan property, check out Bayut’s 2023 Annual Sales Report for Dubai to know which areas made it to the top 3.
WHAT ARE THE AVERAGE SALES PRICES FOR APARTMENTS IN THE HIGHEST ROI AREAS IN DUBAI?
Here’s an overview of the average sales prices (AED) of studio to 3-bedroom apartments in the areas with the best ROI for apartments and villas in Dubai listed above.
Area | Studio | 1-Bed | 2-Bed | 3-Bed |
|---|---|---|---|---|
Area Living Legends | Studio 461,000 | 1-Bed 710,000 | 2-Bed 1,051,000 | 3-Bed 1,442,000 |
Area Liwan | Studio 450,000 | 1-Bed 520,000 | 2-Bed 808,000 | 3-Bed 1,036,000 |
Area Green Community | Studio 492,000 | 1-Bed 839,000 | 2-Bed 1,488,000 | 3-Bed 2,793,000 |
Area Remraam | Studio 415,000 | 1-Bed 618,000 | 2-Bed 984,000 | 3-Bed 1,426,000 |
Area Discovery Gardens | Studio 453,000 | 1-Bed 692,000 | 2-Bed 1,770,000 | 3-Bed N/A |
Area Dubai Silicon Oasis (DSO) | Studio 386,000 | 1-Bed 566,000 | 2-Bed 1,003,000 | 3-Bed 1,456,000 |
Area Town Square | Studio 469,000 | 1-Bed 717,000 | 2-Bed 1,002,000 | 3-Bed 1,596,000 |
Area Motor City | Studio 578,000 | 1-Bed 864,000 | 2-Bed 1,383,000 | 3-Bed 2,010,000 |
Area Al Furjan | Studio 504,000 | 1-Bed 909,000 | 2-Bed 1,330,000 | 3-Bed 2,015,000 |
Area Al Quoz | Studio 468,000 | 1-Bed 749,000 | 2-Bed 1,318,000 | 3-Bed N/A |
HOW MUCH SHOULD I EXPECT TO PAY FOR VILLAS IN HIGH-ROI AREAS?
The table below lists the average sales prices (in AED) for 3 to 6-bed villas in high-ROI areas in Dubai.
Area | 3-Bed | 4-Bed | 5-Bed | 6-Bed |
|---|---|---|---|---|
Area Al Rashidiya | 3-Bed N/A | 4-Bed N/A | 5-Bed 3,105,000 | 6-Bed 3,433,000 |
Area Al Barari | 3-Bed N/A | 4-Bed 6,233,000 | 5-Bed 12,705,000 | 6-Bed 25,746,000 |
Area The Valley | 3-Bed 2,159,000 | 4-Bed 3,200,000 | 5-Bed N/A | 6-Bed N/A |
Area The Sustainable City | 3-Bed 4,097,000 | 4-Bed 5,517,000 | 5-Bed N/A | 6-Bed N/A |
Area Al Twar | 3-Bed 3,067,000 | 4-Bed 3,067,000 | 5-Bed N/A | 6-Bed N/A |
Area Jumeirah Village Circle (JVC) | 3-Bed 2,665,000 | 4-Bed 3,190,000 | 5-Bed 2,783,000 | 6-Bed N/A |
Area International City | 3-Bed 1,639,000 | 4-Bed 1,725,000 | 5-Bed N/A | 6-Bed N/A |
Area Serena | 3-Bed 2,496,000 | 4-Bed N/A | 5-Bed N/A | 6-Bed N/A |
Area DAMAC Hills 2 | 3-Bed 1,494,000 | 4-Bed 1,804,000 | 5-Bed 2,894,000 | 6-Bed 3,853,000 |
Area Town Square | 3-Bed 2,304,000 | 4-Bed 2,779,000 | 5-Bed N/A | 6-Bed N/A |
That concludes our guide to the areas with the best ROI in Dubai for apartments and villas. While buying a property in Dubai to diversify your investment is a good idea, it’s wise first to consider several factors, such as location, developer, nearby amenities and historical rent trends in the area. Doing thorough research on the district/community will help you add a profitable investment to your portfolio!
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Please note that the ROI mentioned above for different communities is an average and can vary based on the property’s location, amenities and other factors.
