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While creating safeguards against a real estate bubble, Dubai has in effect removed the barriers that drove away many end users and investors from the market a few years ago.
From the summer of last year, positive results of the tight regulations implemented by the Dubai Land Department and the UAE Central Bank started to make an impact as prices began to stabilise, putting the brakes on a mad price growth rush that could have pushed the property sector into bubble territory. Buyer confidence and interest in Dubai realty has
now improved, with a new wave of genuine end users and investors actively looking for options in the market.
Long-term investors are particularly excited as rental yields improve. However, with the number of projects being floated, it is often difficult to asses a good location for a rental property investment. Property Weekly speaks to a few experts to find which Dubai communities offer the best rental returns.
Jumeirah Lakes Towers
The upside to being considered the poor cousin of Dubai Marina is that Jumeirah Lakes Towers (JLT) offers more affordable highrise residences. The road and traffic flow is now much improved and JLT has a good mix of work, play and lifestyle experiences. The place has convenient access to several Dubai Metro stations and Shaikh Zayed Road and to nearby communities such as Dubai Marina, The Beach and The Walk at Jumeirah Beach Residence. Residents can have great views of the lakes, parks and Dubai's famous skyline.
Rental return: 6-8 per cent
Units: Studios and one- to four-bedroom apartments
Price: Studio - Dh500,000-Dh900,000; 1BR apartment - Dh1 million-Dh1.55 million; 2BR apartment - Dh1.3 million-Dh2.5 million; 3BR apartment - Dh1.9 million-Dh3.7 million; 4BR apartment - Dh3.9 million–Dh5 million
Projects to watch out for: Al Shera Tower, Greenlakes Tower, Indigo Tower, Madina Tower, Saba Tower
The community is surrounded by many new schools and recreational facilities. It offers good potential for capital growth with a wide selection of private developments to suit various budgets and living requirements. Easily accessible for all major trunk routes, the community is convenient for young families. It has a wide range of town houses that are good value for your money.
Rental return: 7 per cent Units: Studios, one- to four bedroom apartments, town houses and villas
Price: Studio - Dh500,000-Dh650,000; 1BR apartment - Dh700,000-Dh1.5 million; 2BR apartment - Dh1 million-Dh3.1 million; 3BR apartment - Dh1.5 million-Dh2.8 million; 4BR apartment - Dh3.5 million; 1BR town house - Dh1.4 million; 2BR town house — Dh1.225 million; 3BR town house — Dh1.95 million; 4BR town house — Dh2.4 million; villas start from Dh2.7 million for a 2BR unit and up to Dh3.3 million for a 4BR unit
Projects to watch out for: Emirates Gardens, Nakheel Townhouses, Diamond Views, Manhattan Tower, Seasons Community
An affordable family residential option with good access to Shaikh Zayed Road and Dubai Metro. Many residents here work in Abu Dhabi. Discovery Gardens has easy access to Ibn Battuta Mall and the community has a pool and parks.
Rental return: 7-9.5 per cent
Units: Studios, one-bedroom apartments and very few two-bedroom options
Price: Studio — Dh460,000-Dh580,000; 1BR apartment — Dh650,000-Dh760,000; 2BR apartment — Dh1.1 million
Projects to watch out for: Mediterranean Clusters; the U-type layout with a balcony is the most sought after
International City is preferred by new Dubai residents, bachelors and families on a shoestring budget. Each of the ten clusters has a different architectural theme based on different countries. Within the community you will find supermarkets and retail outlets. It is around 9km or roughly 15 minutes from Dubai International Airport and is right next to Dragon Mart mall. It is also close to Academic City. It has easy access to Shaikh Mohammad Bin Zayed Road, Al Khail Road and Academic City Road.
Rental return: 7-7.37 per cent
Units: Buyers can purchase studios, one-bedroom and two-bedroom apartments
Price: Studio — Dh400,000; 1BR apartment — Dh500,000; 2BR apartment — Dh900,000
Projects to watch out for: England, Italy, France and Spain clusters and buildings by Nakheel in the business zones. There are also other commercial buildings by other developers.
Several mid-level office staff working close to freezone areas live in IMPZ. It is close to tourist destinations such as Mall of the Emirates, Madinat Jumeirah, Burj Al Arab and Dubai Marina. It is also in proximity to Dubai Motor City, Dubai Sports City and the Jebel Ali Race Course. The project integrates residential, commercial and industrial components, catering exclusively to companies in the packaging, publishing and graphic arts industries. Located at the intersection of Emirates Road and Al Khail Road, IMPZ is also close to the Al Maktoum International Airport in Dubai World Central.
Rental return: 6.2-7.32 per cent
Units: Studios, one- to three bedroom apartments
Price: Studio — Dh420,000; 1BR apartment — Dh550,000; 2BR apartment—Dh850,000; 3BR apartment—Dh1 million
Projects to watch out for: The Crescent, Lago Vista Towers, Centrium Tower, Oakwood Residence
This is a popular and convenient development due to its central location next to Downtown Dubai. Up-and coming infrastructure and development in the area are driving prices and future occupancy will further push yields higher.
Rental return: 4.9-6.7 per cent, depending on unit size
Units: Studios, one- to four bedroom apartments
Price: Studio — Dh985,000; 1BR apartment — Dh1.6 million; 2BR apartment—Dh2.4 million; 3BR apartment — Dh3.77 million; 4BR apartment — Dh5.5million
Projects to watch out for: Executive Heights, Ubora Tower, Deyaar's Churchill, Mayfair Fairways, Clayton and Hamilton, Damac's The Vogue, Executive Bay and Capital Bay, and Dubai Properties' Bay Square
Dubai Sports City
The development has a good mix of apartment sizes and the community is great for families because of its easy access to schools and sporting and recreational facilities. Victory Heights, a golf residential community, adds attractiveness to the masterplanned development. The community is also close to the commercial hubs and different free zones, ensuring high rental demand.
Rental return: Average yield is 6 per cent (7.5 per cent for apartments and 5.4-7.2 per cent for villas)
Units: Studios, one- to three-bedroom apartments, and three- to six-bedroom villas
Price: Studio — Dh702,000; 1BR apartment — Dh863,000; 2BR apartment — Dh1.15 million; 5BR villa — Dh6.7 million; 6BR villa — Dh12.3 million
Projects to watch out for: Elite Towers, Medallist, Olympic Towers, Champion Towers, Canal residences
Dubai Motor City
An established community located between Dubai Sports City and Arabian Ranches. It has increased in popularity especially after the new Umm Suquiem Road was opened, reducing travel time to Mall of the Emirates to only 15 minutes.
Rental return: 7.2-7.5 per cent for apartments, 5 per cent for town houses, and 6.25 per cent for residences in the Green community
Units: Studios, one- to three-bedroom apartments, and three-bedroom town houses and villas in the Green community
Price: Studio — Dh678,000; 1BR apartment — Dh933,000; 2BR apartment — Dh1.49 million, 3BR apartment — Dh1.87 million; 3BR town house — Dh5 million; 4BR villa in Green community — Dh4.2 million
Projects to watch out for: Foxhills, Sherlock Circus, Dickens Circus, Norton Court, Widecombe House, Green community and Windsor Crescent
The Greens & The Views
A well-maintained community catering mainly to families who want to be near major business hubs. It is easily accessible through Shaikh Zayed Road, First Al Khail Road and Hessa Street, with direct links to Al Khail and Mohammad Bin Zayed Road. Close to schools such as Regent, Emirates International, Choueifat, American School of Dubai and Gems Wellington, the community offers good potential for capital appreciation.
Rental return: 6-7 per cent
Units: Studios, one-bedroom apartments and compact two-bedroom apartments, which are more in demand and are easy to lease out
Price: Studio — Dh750,000; 1BR apartment — Dh1 million; 2BR apartment — from Dh1.6 million
Projects to watch out for: The Greens, Golf Towers, The Links, Fairways, Tanaro and Mosela
One of the most prestigious and sought-after communities in the emirate, Downtown Dubai enjoys a stable demand, resulting in low vacancy rates. People working in Dubai International Financial Centre, Emaar Square and Business Bay will find it an ideal place to reside.
Rental return: 5-6 per cent
Units: Studios, one- to three bedroom apartments
Price: Studio — Dh1 million; 1BR apartment — Dh1.6 million; 2BR apartment—Dh2.5 million; 3BR apartment — Dh4.5 million
Projects to watch out for: South Ridge, Old Town, The Lofts, 29 Boulevard, Boulevard Central, Claren Towers
Find out why now is a great time to invest in real estate
Source: Hina Navin, Special to Property Weekly