Buying properties in Dubai is becoming an increasingly attractive proposition given the ongoing adjustment in sale prices. Properties in the emirate, especially apartments, are becoming affordable by the day for tenants looking to become home owners. Besides, strength of rents means investors can also indulge in the market to earn a lucrative and secure rental income. The average price of a studio apartment in February 2017 was AED 667,000, 3% less than the December average.
However, an average annual rent of AED 53,000 meant rental yield for the category remained close to 8%. So whether you’re a home buyer or an investor aiming at expanding revenue streams, the time for buying seems right. But before you proceed, consider our guide to the areas most popular with buyers during February. Maybe, it’s the guide you wanted all along.
A destination for those who love waterside living, heading out to the sea for adventure and beginning the day with a refreshing jog around the block, Dubai Marina is the top choice for living of both buyers and tenants. The upscale locality is as good as residential communities get. The promenade is certainly the hallmark of Dubai Marina. The promenade is surrounded by beautiful structures that offer luxury apartments of all sizes. Dubai Marina is well prepared to cater to all needs of residents, be it bicycling, jogging, roller-skating or a sumptuous meal. Then there’s the Marina Mall nearby, so retail therapy is always at hand.
But amenities come at a price of course, and being the hottest locality in the emirate, Marina commands a premium. Average apartments in Dubai Marina (across all categories) cost approximately AED 3.2 million in February 2017. However, the average yield offered by apartments in Dubai Marina was a little above 6%.
Among the few places in the world that need no introduction, Downtown Dubai was the second most popular area for buying apartments in February. Defined by luxury living, high street fashion and year-round festivities, the area is alive every day of the year. The usual checklist for visiting Downtown would look like: spot celebrities; see the rarest of luxury cars; explore the world’s biggest mall; see the tallest dancing fountains in the world; visit Dubai Opera; watch the world from atop the Burj Khalifa and have the time of your life.
Residents of the area are rarely short on fun as well as demand from buyers and intending tenants. The average apartment in Downtown Dubai cost close to AED 5.6 million in February 2017. But a 5.5% average rental yield kept the bargain interesting for prospective investors.
Jumeirah Lakes Towers
How about getting all the benefits of Dubai Marina but at a fraction of the price? Well, that’s Jumeirah Lakes Towers for you. JLT is situated across Dubai Marina and the only real difference is that of price. in comparison with Marina’s AED 3.2 million, average apartment rate was AED 1.8 million in JLT.
Like Marina, JLT also has waterside properties, is pet-friendly and has lots of avenues for outdoor activities. Quality restaurants abound and so do entertainment venues. Even if you do not plan to live in one of the properties in JLT, a rental yield of 7.2% should still interest you in investing in the area.
Headquarter to some of the most renowned firms operating in the MENA region, Business Bay aptly justifies its fame. The business district is extremely well-planned and ideal for all types of businesses. Nestled between the scenic Dubai Water Canal and Downtown Dubai, Business Bay is a hotbed for setting up and expanding businesses.
Owners in the area obviously benefit from the immense demand for housing from executives working in the area. Rent for studio units here go as high as AED 80,000 per annum, explaining its popularity. In February, the apartments in Business Bay commanded an average price of AED 2.7 million. The average rental yield was also very attractive at 6.2%, making Business Bay a highly prised locality.
Jumeirah Village Circle
The only suburban community in our top five list, Jumeirah Village Circle (JVC) is perfect for folks looking for peaceful living spaces. The area lies in the western suburbs of Dubai and offers vast green spaces to put the mind to ease. It also benefits by being close to happening communities like Dubai Sports City and Motor City, both of which offer plenty of quality restaurants, sports facilities and entertainment venues. Units in JVC are from the fresher stock of supply made available in the past few years. On average, an apartment in JVC cost an affordable AED 1.2 million in the outgoing month, making a strong case for investment. The rental yield also remained highly attractive at close to 8% in February 2017.