Where studio rents in Dubai went up in May

Top 7 Dubai's locations bring the highest rental yields to their owners. Click to find where studio apartment rents went up in May, according to Bayut.

Did you know that making a small investment in a modest studio apartment in Dubai, can provide you up with 11% of annual rental income? The list of the "future city" areas, where such income may not only be the highest, but also growing, has remained almost unchanged in recent months, but some reshuffle among its leaders can still be felt. Let's see, who is ahead this time.

Thus, the top line in rental yields rating growth was taken by Dubai Silicon Oasis this time, which in May showed rental growth by an average of 11%. Given that the average annual rents for studios here stand at AED 47,000, this area looks especially attractive for investments.

Little less than that, 10% specifically, did Dubai Sports City reported of the annual rental income growth in May. This month Sports City regained the second position in the rental prices growth rating. Annual rents in the area rose to AED 50,000.

A studio in the ​​International Media Production Zone (IMPZ) can bring the owner an average of 9% of rental yields, i.e. approximately AED 42,000 per annum. The comparable percentage is registered for Jumeirah Village (9% of annual yields), but profit margins are much higher in cash — from AED 53,000 on average.

Around AED 47,000 per annum one can get from renting a studio in Discovery Gardens, which is highly popular among tenants due to its cozy green surroundings and proximity to the large-scale Ibn Battuta shopping mall. Besides, the Metro Red Line extension by 2020, which could be operational as early as from 2019, according to Dubai RTA, as well as proximity to Expo 2020 site will certainly add a lot of points to Discovery Gardens from the property lease perspective. Undoubtedly, 9% of the average annual rental income recorded here in May, will substantially increase over time.

On the contrary, such areas as Motor City and International City lost some of their popularity in May. Now the average rental income for studios in these remote areas stands at about 9%. However, despite the same yields percentage level, the real rental income in these areas is quite different. Studios in the Motor City can provide even up to AED 59,000 of rental income per annum, while same-size property owners in the International City can expect a more modest income of AED 31,000 pa. International City is considered the most affordable Dubai area in terms of property rents, and thus is densely populated by expats from all over the world.

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