Abu Dhabi vs Dubai – Where can you get your money’s worth when buying a villa?
Are you looking to buy a villa in the UAE but can’t decide between Dubai or Abu Dhabi? Both cities have their unique advantages, but how do you choose one over the other? To help answer the Abu Dhabi vs Dubai question, our data engineers have put together areas in Dubai and Abu Dhabi that offer the highest return on investment (ROI) for villas. Read on to know more about these neighbourhoods, expected returns, property layouts, amenities available and the financial outlay.
BUYING VILLA IN ABU DHABI VS DUBAI: WHAT YOU SHOULD KNOW
Dubai and Abu Dhabi, two of the most well-planned cities in the world, offer investors numerous opportunities for property investment in the UAE. However, the emirate you choose will depend on your investment purpose and lifestyle preferences.
It also makes sense to buy a villa in the city where you live and work. However, if you want to own a villa only to sell it in the immediate future for instant ROI or rent it out as a consistent income source, then settling for the emirate that offers the highest ROI would be the way to go.
To help you make the right choice regarding investing in Abu Dhabi vs Dubai, let’s take a look at the top areas offering villas for sale in Dubai and Abu Dhabi with the highest ROI.
TOP THREE AREAS TO BUY A VILLA IN DUBAI WITH HIGHEST ROI
Of course, Dubai is best known for its skyscrapers and the glorious skyline. But, those who prefer more privacy and a bigger space can always find a villa they’re looking for, given the budget and lifestyle. The sheer variety of properties and residential communities gives you the luxury of choosing between different villas for sale in Dubai according to your specific needs.
- 5 BEDS
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- 6 BATHS
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- 7969 SQFT
- 3 BEDS
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- 4 BATHS
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- 2098 SQFT
So, where exactly should you start looking? Here are the top areas that can serve as ideal starting points for your search.
Neighbourhood | ROI | Unit Size | Sales Price | Rent |
|---|---|---|---|---|
Neighbourhood Mohammed Bin Rashid City | ROI 6.99% | Unit Size 4-Bed | Sales Price AED 12,105,000 | Rent AED 723,000 |
Neighbourhood Mohammed Bin Rashid City | ROI 6.99% | Unit Size 5-Bed | Sales Price AED 16,758,000 | Rent AED 1,161,000 |
Neighbourhood Jumeirah Golf Estates | ROI 6.77% | Unit Size 3-Bed | Sales Price N/A | Rent AED 198,000 |
Neighbourhood Jumeirah Golf Estates | ROI 6.77% | Unit Size 4-Bed | Sales Price AED 7,003,000 | Rent AED 384,000 |
Neighbourhood Jumeirah Golf Estates C | ROI 6.77% | Unit Size 5-Bed | Sales Price AED 9,890,000 | Rent AED 699,000 |
Neighbourhood DAMAC Hills | ROI 6.56% | Unit Size 3-Bed | Sales Price AED 2,429,000 | Rent AED 148,000 |
Neighbourhood DAMAC Hills | ROI 6.56% | Unit Size 4-Bed | Sales Price AED 3,262,000 | Rent AED 226,000 |
Neighbourhood DAMAC Hills | ROI 6.56% | Unit Size 5-Bed | Sales Price AED 5,248,000 | Rent AED 359,000 |
MOHAMMED BIN RASHID CITY
First up on our list of areas offering the highest ROI on buying villas in Dubai is Mohammed Bin Rashid City (MBR City). With quick access to Business Bay, Al Quoz and Dubai Design District, this community features some of the best villas in the city and is equipped with all basic amenities needed for a convenient lifestyle.
One reason for its popularity is the abundance of green spaces within the community. As a resident, you will have plenty to do here.
ROI FOR VILLAS IN MBR CITY
If you can’t decide whether to invest in Dubai or Abu Dhabi real estate, MBR City could be an attractive option considering its high projected ROI of 6.99%. You can also check out MBR City floor plans for further clarity on property layout and design.
On average, a 4-bed villa for sale in MBR City is priced at AED 12M. The asking rate rises to AED 16M for a 5-bed villa. Those interested in renting out their villas in MBR City can expect to fetch AED 723k as average rent for a 4-bed villa in MBR City. The 5-bed villas rent put for an annual average of AED 1.1M.
JUMEIRAH GOLF ESTATES
Taking the second spot on our list is the prestigious locality of Jumeirah Golf Estates. Home to the beautiful Fire and Earth golf courses, the neighbourhood offers everything for luxury living.
Location is one of its key advantages as residents enjoy direct access to Mohammed Bin Zayed Road (E311), making the commute hassle-free. The neighbourhood also has a dedicated Dubai Metro station, Jumeirah Golf Estates Metro Station, which is part of the Route 2020 extension.
The community, as stated earlier, offers excellent amenities. Among the areas discussed in our Abu Dhabi vs Dubai analysis, Jumeirah Golf Estate is well-suited for people who prefer a serene locality with lots of open green spaces.
ROI FOR VILLAS IN JUMEIRAH GOLF ESTATE
Investors can expect to earn an ROI of 6.77% on villa properties in the area. To get a better idea of layouts, you can look at the different floor plans for Jumeirah Golf Estate.
To buy a 4-bed villa in the area, you will have to pay AED 7M, on average. Whereas the sales price for a 5-bed villa in Jumeirah Golf Estate averages around AED 9.8M
To put things in perspective for how much rental returns you can expect on buy-to-let villas in Jumeirah Golf Estates, the 3 and 4-bed houses here are rented out for AED 198k and AED 384k, respectively. The average rent for a 5-bed villa in Jumeirah Golf Estate is AED 699k.
DAMAC HILLS
Next up, we have villas in DAMAC Hills. This quaint community with lush green landscaping is a growing investment hub. Residents enjoy a classic suburban lifestyle, and the district is perfect for those who prefer living in a tranquil locality.
Being located on Al Qudra Road (D63) means that the commute to other key areas in Dubai is simple. Another reason for DAMAC Hill’s popularity, especially amongst families, is the availability of reputable schools nearby.
ROI FOR VILLAS IN DAMAC HILLS
A lucrative ROI of 6.56% is why investors are keen on buying villas in DAMAC Hills. Before you start your active search for a property, it might be a good idea to look at DAMAC Hills floor plans.
A cosy 3-bed villa for sale in DAMAC Hills would cost you AED 2.4M, on average. The average sales price for a 4-bed villa in DAMAC Hills is AED 3.2M. It increases to AED 5.2M for a 5-bed villa.
On the other hand, a buy-to-let 3-bed villa in DAMAC Hills can be rented out for AED 148k per annum. The asking rent for 4-bed villas in DAMAC Hills have averaged at AED 226k, where as the 5-bed houses can earn you an average annual rental income of AED 359k.
TOP THREE AREAS TO BUY A VILLA IN ABU DHABI WITH HIGHEST ROI
Like Dubai, the UAE capital also has many quiet suburban villa communities where you can get all the urban amenities. If you’re looking for villas for sale in Abu Dhabi that can serve as ideal investments, we’ve got the best ones lined up for you.
- 4 BEDS
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- 6 BATHS
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- 6771 SQFT
- 4 BEDS
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- 8 BATHS
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- 5794 SQFT
Villas in Abu Dhabi are available in different layouts. So, you need to decide which unit is more suitable for you. Here’s an overview of the expected ROIs and asking prices in the popular neighbourhoods.
Neighbourhood | ROI | Unit Size | Sales Price | Rent |
|---|---|---|---|---|
Neighbourhood Hydra Village | ROI 6.90% | Unit Size 3-Bed | Sales Price AED 949,000 | Rent AED 65,000 |
Neighbourhood Al Reef | ROI 6.27% | Unit Size 3-Bed | Sales Price AED 1,529,000 | Rent AED 101,000 |
Neighbourhood Al Reef | ROI 6.27% | Unit Size 4-Bed | Sales Price AED 2,173,000 | Rent AED 137,000 |
Neighbourhood Al Reef | ROI 6.27% | Unit Size 5-Bed | Sales Price AED 2,525,000 | Rent AED 150,000 |
Neighbourhood Al Raha Gardens | ROI 5.91% | Unit Size 3-Bed | Sales Price AED 2,593,000 | Rent AED 152,000 |
Neighbourhood Al Raha Gardens | ROI 5.91% | Unit Size 4-Bed | Sales Price AED 3,168,000 | Rent AED 179,000 |
Neighbourhood Al Raha Gardens | ROI 5.91% | Unit Size 5-Bed | Sales Price AED 4,221,111 | Rent AED 222,000 |
HYDRA VILLAGE
Hydra Village ranks first on our list of areas offering the highest ROI on villas in Abu Dhabi. The neighbourhood offers a family-oriented and suburban lifestyle. The community has dedicated play areas for kids and plenty of other modern amenities.
ROI FOR VILLAS IN HYDRA VILLAGE
The projected ROI for Hydra Village villas is 6.9%. Given the general trend of the market, you can expect a good profit in the long run.
If you want to buy a 3-bed villa in Hydra Village, the average sales price is AED 949k. On the other hand, you can rent out the same 3-bed villa in Hydra Village for AED 65k per annum.
AL REEF
The second entry on our list of Abu Dhabi localities with the highest ROIs is Al Reef. Located on Abu Dhabi’s outskirts, it is perfect for people who regularly commute to Dubai. Moreover, commuting around Abu Dhabi isn’t a problem with the well-connected road network. This area was specially developed, keeping into consideration the middle-income group. So, you can find excellent properties at reasonable prices.
ROI FOR VILLAS IN AL REEF
Villas for sale in Al Reef offer an expected rental returns of 6.27%. Check out Al Reef floor plans to find the property that suits your need best.
The average sales price of a 3-bed villa in Al Reef stands at AED 1.5M. The a 4 and 5-bed villas for sale are priced at AED 2.1M and AED 2.5M, respectively. Those who plan to let the properties can expect to fetch AED 101k on average rent for a 3-bed villa in Al Reef. The 4 and 5-bed villas in Al Reef can be rented out for AED 137k and AED 150k, respectively.
AL RAHA GARDENS
If you are looking to buy a house in Abu Dhabi, villas in Al Raha Gardens can be a good option as you can expect excellent returns on your investment. Alternatively, if you plan to live with your family, Al Raha Gardens is a peaceful neighbourhood equipped with world-class facilities.
ROI FOR VILLAS IN AL RAHA GARDENS
Are you still pondering about Dubai vs Abu Dhabi investment? Al Raha Gardens’ growth potential and luxury quotient might swing your decision favouring the UAE capital.
You can expect a return of 5.9% on your investment. Have a look at the Al Raha Gardens floor plans to get a better idea of property designs in the area.
The average sales price for a 3-bed villa in Al Raha Gardens is AED 2.5M. Whereas for a 4-bed villa, it averages at AED 3.1M. For a larger 5-bed villa, you will have to pay AED 4.2M, on average.
On the flip side, a 3-bed villa for rent in Al Raha Gardens can earn you AED 152k annually. The 4 and 5-bed villas can be rented out for AED 179k and AED 222k, respectively.
FREQUENTLY ASKED QUESTIONS
WHERE CAN I LEARN MORE ABOUT DUBAI’S REAL ESTATE MARKET?
Read our Bayut & dubizzle’s Dubai Annual Sales Market for 2021 to understand the changing dynamics of the city’s property market.
WHERE CAN I LEARN MORE ABOUT ABU DHABI REAL ESTATE MARKET?
For the capital emirate, you can read our Bayut & dubizzle’s 2021 Abu Dhabi annual sales market report to analyse trends over the past 12 months.
That wraps up our Abu Dhabi vs Dubai investment analysis. You can also get insights on the cost of living in Abu Dhabi vs Dubai to further evaluate the two choices.
We hope this blog helps you decide whether you should invest in Dubai or Abu Dhabi real estate. Both emirates have their own merits. It all depends on your current plans, long term goals, budget and personal preferences.
To know more about the UAE real estate market, don’t forget to follow MyBayut.
*Please note that prices and ROI quoted above is based on the data sourced from Bayut & dubbizle at the time of publishing.
