Dubai is a city with one of the highest average rental yields in the world. Some units can provide up to 20% of rental income and average lease yields consistently stand at around 7 per cent pa. Dubai landlords owe this advantage to the relation between rather low (as for elite property) real estate prices in comparison with similar global capitals and cultural centers and consistently high demand for rents due to population growth.
So, where is more bounce to the ounce or, in that case, to the square feet of an apartment leased in Dubai? First locations, which come to mind of an experienced Dubai resident, may be such affordable Dubai areas as International City or Sports City. Housing prices in these locations are rather low indeed, but it would be hard to get anything above the average when leasing studio apartments there.
1. Palm Jumeirah. One and only set of manmade islands of Palm Jumeirah tops the rating. A lot has been said of this artificial archipelago, but some property buyers still view it exceptionally as a beachfront style living area with villas and luxury hotels. However, there are also quite affordable (as for luxury segment) studio apartments set for rent at an average of AED 86,000 pa, which will get you up to 6% of yields.
2. Jumeirah Beach Residence. JBR is surely among the leaders on the demand list both among tourists and Dubai residents. Endless beaches and promenades with restaurants, shops and entertainment venues with a touch of luxury attract big city life fans from all over the world. The average cost of renting a studio apartment in this area is similar to that on Palm Jumeirah and stands at AED 86,000 pa, but the average rental income here is higher — up to 7% due to lower sale prices.
3. Downtown Dubai. Where is the world’s tallest building and the Dubai’s main dominant Burj Khalifa situated? This is the first question asked by newcomers in Dubai and this is where they want to rent an apartment. Everything seems to be a bit mixed here making the neighborhood highly desired. Large companies’ offices together with fashionable boutiques of the most famous brands, and the most famous restaurants all are set in Downtown Dubai. Therefore, rentals for residential units here are respectively highly priced. Studio apartments rents stand at AED 79,000 pa on average, which gives a 6% return on investment for this asset.
4. The Views. Now, let’s move somewhat away from the sea. There are plenty pretty places to live in Dubai when even not on the beachfront. Studio apartment overlooking the Emirates Golf Club in The Views complex is a quite prestigious real estate rental option with astonishing views of green golf courses coming as a bonus. That's why even a small-sized studio here is priced an average of AED 77,000 pa giving the owner as much as 8 per cent of rental yields annually. Additionally, there is a convenient access to all major Dubai roads and easy access to the metro.
5. Dubai Marina. Well, as they say, now let’s serve the "dessert" imexre.com’s reserved for you reviewing top leasing Dubai locations. At first sight, any investor focused on dividends size won’t see any impressing numbers here. Average rental yields for studio apartments in Dubai Marina stand at 6% pa, but in the long run this investment is the most profitable and reliable option Dubai has to offer. There is almost no free land left to build here on, while the prestige of the area isn’t even worth mentioning, for Dubai Marina is the center of all social and glamour high-life of the emirate. The luxurious views of the docks, lined with snow-white yachts, and everything that modern city infrastructure has to offer, including shopping malls, gyms, entertainment facilities, retail units, restaurants — all is concentrated here. The cost of renting a studio apartment in this area is consistent with the declared prestige and averages to AED 75,000 pa.