It’s true that there is a decline in rentals and slowdown in all of the real estate market. Despite this, there are still sections of Dubai’s property market that yield high single digits to investors. Analysts said that investors may still enjoy high rental yields of 6.23 percent on average. The following are the top 10 Dubai communities that can offer the highest rental yields.
The Dubai Sports city apartment may offer the best returns of about 9.2 percent per annum while the apartment rates in the area decreased by nearly 2 percent in the last six months. It’s the same thing as an apartment in Dubai Silicon Oasis. Prices have fallen by 3.6 percent within the last 6 months, but it can give you a rental yield of 8.7 percent year-to-date to investors.
The Jumeirah Village Triangle or JVT is still under development but it has already been attracting a lot of tenants. It is also considered a good option for people who are working in Dubai South. Its prices there dropped by 2 percent in the last 6 months; however, apartments there can give investors a yield of 8.45 percent year-to-date.
There are other areas in Dubai that also offer high rental yields such as Discovery Gardens at 8.96 percent, Dubai Investment Park at 8.73 percent, International City at 8.59 percent, and Dubai Sports City at 8.29 percent. Other places are Dubai Land by 8.33 percent, International Media Production Zone by 8.05 percent, Motor City by 7.75 percent, and Jumeirah Village Circle by 8 percent.
Lukman Hajje, the chief commercial officer of Property Finder Group, the rental yields may be determined by several factors. It is usual for the smaller properties to produce better rental yields compared to the larger rental properties. For instance, apartments are better yielding than villas while studios can give you better rental yields than larger apartments.
However, it is also crucial to consider the location. Those newer and emerging communities can offer better rental yields compared to the more established ones. It follows that newer cities can produce higher rental yield than the highly established ones.
Luxhabitat, on the other hand, considers the following places as among the top 10 best communities to give investors the best rental yields: Liwan, IMPZ, Dubai Residence Complex, and Jumeirah Village Circle. Properties in these areas offer rental yields between 7.9 percent to 8.4 percent. Apartment rates in such communities have fallen between 1 percent to 2.8 percent within the last six months.
Before making a Rental Investment in Dubai, it is important to be advised to find the right property to generate stable rental returns. Contact HBS for assistance.
