High expected returns on investment have long since made the Dubai real estate market an attractive proposition for both local and international investors. Over the years, buyers and investors have taken advantage of favourable trends by focusing on areas that offer the best ROI on villas in Dubai. Here’s how you can do that, too!
WHERE CAN YOU GET THE BEST ROI ON VILLAS IN DUBAI?
Despite the many myths, there is no hidden secret to successful property investment. The key is to analyse the data for a significant period of time and then make a calculated decision based on historical trends. Here at Bayut, our data engineers have crunched the numbers and identified the areas offering the best ROI on villas in Dubai. The results of the extensive analysis will also be helpful for people looking to upgrade from apartments to villas in Dubai.
Here’s the list of areas where buying a villa is likely to be a financially fruitful decision:
GREEN COMMUNITY, DIP
The Green Community in DIP tops our list of areas that offer the best ROI on buying villas in Dubai. This modern, eco-friendly community is certainly easy on the eye with its landscaped gardens, lakes and picturesque public parks.
Schools, pools, tennis courts and play areas ensure the community is extremely attractive to families. In fact, it’s the family-friendly lifestyle that sets the Green Community apart from many other areas of Dubai. Supermarkets, medical clinics, restaurants and hotels are also prevalent throughout DIP. Commuting? The Green Community at DIP provides easy access to the major thoroughfares of Sheikh Zayed Road (E11) and Sheikh Mohammad Bin Zayed Road (E311).
To buy a 4-bed villa in Green Community, you’ll likely pay an average of AED 3.5M. In fact, it’s among the top communities where you can buy 4-bed villas in Dubai under AED 3.5M.
The expected ROI for villas in Green Community is an impressive 5.61%. For a detailed overview of the villa layouts, take a look at Bayut’s floor plans for Green Community.
A master development by Emaar Properties, Reem is where the past meets the future. The villas in this residential community are inspired by traditional Arabic and Mediterranean architecture, while offering modern comforts. It also has amazing amenities like go-karting tracks, sand surfing, camel riding tracks and a Botanical Park with camping facilities just a short distance away.
While the neighbourhood is located away from the hustle and bustle of Dubai, various attractions and amenities are easily accessible for residents. For shopping, residents can head to the nearby Dubai Outlet Mall, while Mall of the Emirates is just a 20-minute drive away. There are also reputable schools and healthcare facilities in the area.
Reem is also the first gated villa community in Dubai with a central park. This beautiful family park has a large fountain, skating and jogging tracks and bicycle pathways. Thanks to these many amenities and high-quality residences, investors can expect the average ROI of Reem villas to be 5.5%.
To buy a 3-bed villa in Reem, the financial outlay averages at AED 1.8M. For 4-bed villas in Reem, the asking average sales price increases to AED 2.2M. Among the areas with the best ROI on buying villas in Dubai, Reem offers competitive rates for investors. You can also take a look at the Reem floor plans in 2D and 3D formats to get a better perspective of the villa layouts.
In many ways, Mudon is a city within a city. Developed by Dubai Properties, Mudon features gardens, park and a dedicated community centre for residents. Another key factor for its popularity is its location. Residents enjoy quick access to Emirates Road (E611), which makes daily commuting reasonably stress-free.
Located in the heart of Dubailand, there are numerous advantages of living in this gated community. Aside from round-the-clock security, residents have access to a shopping centre, health club, medical centre, mosque, nursery, schools, pools and a 1.8 million sq. ft. park.
For a 3-bed villa for sale in Mudon, the asking price averages at AED 1.8M. The average sales price goes up to AED 2.7M and AED 3.9M for 4 and 5-bed villas, respectively. Those who buy villas in Mudon can expect ROI as high as 5.41%. Take a look at Mudon floor plans to view the different configurations and layouts available.
The Lakes by Emaar also offers a range of elegant, spacious villas with healthy ROI. Divided into six sub-communities, the project is close to two fabulous golf courses: Montgomerie Golf Club and the Emirates Golf Course. Also, residents easily access leisure hubs such as Dubai Marina, Palm Jumeirah and the notable highway of Sheikh Zayed Road due to the community’s strategic location.
The gated neighbourhood offers excellent facilities and amenities. There are tennis, squash and basketball courts as well as reputed educational institutes, gyms, salons and supermarkets in and around the community. As its name suggests, there are many man-made lakes and huge green spaces that also make life in The Lakes a pleasant experience. Investors keen to generate high returns from the investment will be glad to know that the expected ROI of villas in The Lakes averages at 5.36%.
The average sales price of a 3-bed villa in The Lakes is AED 3.1M. Those interested in buying a 4-bed villa can expect to pay AED 4.8M, on average. In comparison, a 5-bed villa for sale in The Lakes would cost an average of AED 8M. To get a better picture of the different types of villas available, check out floor plans in The Lakes.
Wrapping up our list of the top areas with the best ROI on villas in Dubai is Meydan. It means “a meeting place” in Arabic, which aptly reflects the area’s potential as a place where business opportunities and luxurious lifestyles come together. Meydan City offers a range of upscale properties and has been steadily gaining popularity as a strategic location to buy villas in Dubai.
Once the ongoing developments are complete, residents will be able to access state-of-the-art amenities and attractions. High-profile events such as the Dubai World Cup and close proximity to the Meydan racecourse have also added value to the community. The upcoming Meydan One Mall will also add a wealth of retail and entertainment options for the residents in the area. Other neighbourhoods such as Business Bay and Downtown Dubai are nearby, which offers quick access to leading restaurants, retailers and much more.
The expected ROI in Meydan City is a healthy 5.32% on average. If you are interested in buying a 4-bed villa in Meydan City, you will pay AED 3.4M on average. Similarly, the average sales price increases to AED 7.9M for a 5-bed villa in Meydan City. Get a better idea of the villa layouts available with Bayut’s floor plans for Meydan City.
WHAT ARE THE BEST AREAS TO BUY TOWNHOUSES IN DUBAI?
If you are considering buying a townhouse, there are several communities to choose from. Here is our in-depth guide to popular areas to buy townhouses in Dubai.
I WANT TO BUY A VILLA WITH A PRIVATE POOL. WHAT ARE MY OPTIONS?
Many of Dubai’s uber-luxurious properties come with a private pool, where you can take a plunge whenever you feel like it! Take a look at our list of the villa communities in Dubai with private pools to learn more about your options.
That concludes our guide to the top areas with the best ROI on villas in Dubai. While buying a villa in Dubai to diversify your investment portfolio is an astute idea, it’s wise to first consider several factors, such as location, developer, nearby amenities and historical rental trends in the area. Doing thorough research on the district/community will help you make a profitable investment!
Visit MyBayut to stay updated on the latest trends in the UAE’s real estate market!
Please note that the ROI mentioned for different communities is an average and can vary based on the property’s location, amenities and other factors.