Dubai guarantees world’s highest property rental yields, while rental income is not taxed. Dubai areas with affordable housing offer the biggest rental return, a report by Land Sterling has revealed.
According to Land Sterling, the rating of the most profitable Dubai areas in terms of rental return is headed by Discovery Gardens, where the average annual rental income is about 10.2%. This figure has also increased by 1% since 2014, due to the average psf value decrease down to USD 2480.
Second and third positions in rating were given to Jumeriah Village Circle and Dubai Silicon Oasis, where rental income is 10% and 9.8%, respectively. Average rentals in Jumeriah Village Circle today are about USD 14,000 – 38,000 pa, while Dubai Silicon Oasis properties owners are able to lease their units for USD 13,000 - 24,000 pa.
Other Dubai areas with affordable housing, such as International City, Dubai Sports City, International Media Production Zone (IMPZ) and The Greens, are closing the top five. Here, property owners can get about 7.71% - 9.4% of rental income pa.
However, the central Dubai locations most popular with tenants can also offer great rental return for high-end properties. Rentals in Dubai Marina, Business Bay, Jumeirah Lakes Towers and Downtown Dubai start from USD 17,700 and can go up to USD 67,000 pa for exclusive properties in the iconic skyscrapers. And psf sales cost here stopped increasing, so rental income here can be up to 8.5% for units in Business Bay and about 8.10% for Dubai Marina properties.