Areas with Best Rental Yields on Studios in Dubai & Abu Dhabi

Studio apartments are one of the most preferred residential options for a large chunk of population living in global cities like Dubai. Thanks to the ease of maintenance and low cost of renting, studio units make suitable accommodation for young professionals as well as young families living across the world. But the benefits are not limited to tenants only, as these units offer lucrative rental yields to owners as well. So digging deep into its comprehensive database, Bayut.com presents a list of areas in Dubai and Abu Dhabi that will provide you the best rental yield for studio apartments.

Dubai

The growing city that it is, studio units remain in high demand in Dubai the year round as thousands of talented individuals land in the city in search of a better livelihood. If you are also seeking a studio for sale in Dubai to cash in on that demand, we recommend acquisition of a unit or two in Arjan, which returned the top rental yield for studio apartments in January 2017. With average unit prices recorded at AED 501k, studio units in Arjan offered owners an average rental yield of almost 10%.

Arjan is part of the larger Dubailand project and is rapidly climbing the popularity charts owing to its unpassable mix of offering quality units at affordable rates. At the number two spot was Arjan’s neighbour Jumeirah Village Circle, where average yields for studio units was 9.5% in January, as was the nearby Dubai Sports City where studio units also returned a yield of 9.5%.

Studio units in both Dubai Silicon Oasis and International Media Production Zone (IMPZ) returned a yield of 9.3%, while similar units in Discovery Gardens offered a rental return of 9%. Owners of studio units in the city’s business hub, Business Bay, earned an average annual rental yield of 8.7%, while units situated in the highly affordable International City were close behind with a rental return of 8.6%. The list was rounded up by Dubailand and Akoya by DAMAC, both of which offered studio unit owners a rental yield of 8% in January 2017.

Abu Dhabi

While rental yields for studio apartments maxed out at 10% in Dubai, Abu Dhabi took the returns a step further as the rental yield in individual areas was as high as at 11.5%. The 11.5% rental return, the most for studio units in Abu Dhabi in January 2017, was recorded in Saadiyat Island, the rapidly developing residential, entertainment and lifestyle destination in the UAE capital. Studio units in this locality cost an average of AED 913k in January, a bit pricey but worth it when considered with respect to the rental return. Besides, the locality is on its way to becoming one of the most preferred communities in the emirate, so investing now could spell boon for the future.

Next we had properties on Al Raha Beach that returned an average rental yield of 9.6% in January. Studio apartments here cost an average of AED 1.04 million in the outgoing month. The locality was followed by Al Reem Island, where studio unit rental yield was 9%, followed by Al Reef. The average rental yield for studio units in Al Reef was 8%, while the last place on our list was claimed by Al Ghadeer, the quiet border town offering owners an average rental yield of 7.8%.

So, if you are in search of apartments for sale in Abu Dhabi, you can consider the aforementioned areas.