Abu Dhabi vs Dubai: Where can you get your money’s worth when buying a villa?
Are you looking to buy a villa in the UAE but can’t decide between Dubai and Abu Dhabi? Both cities offer unique advantages, but how do you choose between them? To help answer the Dubai vs Abu Dhabi question, our data experts have identified areas in each city that offer the highest return on investment (ROI) for villas. Discover the expected returns, property layouts, available amenities and financial outlay for these prime locations.
BUYING VILLA IN ABU DHABI VS DUBAI: WHAT YOU SHOULD KNOW
Dubai and Abu Dhabi, two of the most well-planned cities in the world, offer investors numerous opportunities for property investment in the UAE. However, the emirate you choose will depend on your investment purpose and lifestyle preferences.
It also makes sense to buy a villa in the city where you live and work. However, if you want to own a villa only to sell it in the immediate future for instant ROI or rent it out as a consistent income source, then settling for the emirate that offers the highest ROI would be the way to go.
To help you make the right choice regarding investing in Abu Dhabi vs Dubai, let’s take a look at the top areas offering villas for sale in Dubai and Abu Dhabi with the highest ROI.
TOP THREE AREAS TO BUY A VILLA IN DUBAI WITH HIGHEST ROI
Of course, Dubai is best known for its skyscrapers and the glorious skyline. But, those who prefer more privacy and a bigger space can always find a villa they’re looking for, given the budget and lifestyle. The sheer variety of properties and residential communities gives you the luxury of choosing between different villas for sale in Dubai according to your specific needs.
So, where exactly should you start looking? Here are the top areas that can serve as ideal starting points for your search.
Neighbourhood | ROI | Unit Size | Sales Price | Rent |
|---|---|---|---|---|
Neighbourhood DAMAC Hills 2 | ROI 6.66% | Unit Size 3-Bed | Sales Price AED 1,821,000 | Rent AED 108,000 |
Neighbourhood DAMAC Hills 2 | ROI 6.66% | Unit Size 4-bed | Sales Price AED 1,974,000 | Rent AED 131,000 |
Neighbourhood DAMAC Hills 2 | ROI 6.66% | Unit Size 5-bed | Sales Price AED 3,300,000 | Rent AED 148,000 |
Neighbourhood Jumeirah Village Circle | ROI 6.58% | Unit Size 3-Bed | Sales Price AED 3,352,000 | Rent AED 198,000 |
Neighbourhood Jumeirah Village Circle | ROI 6.58% | Unit Size 4-bed | Sales Price AED 3,593,000 | Rent AED 213,000 |
Neighbourhood Jumeirah Village Circle | ROI 6.58% | Unit Size 5-bed | Sales Price AED 4,891,000 | Rent AED 232,000 |
Neighbourhood Al Barari | ROI 6.45% | Unit Size 4-bed | Sales Price AED 7,678,000 | Rent AED 1,610,000 |
Neighbourhood Al Barari | ROI 6.45% | Unit Size 5-bed | Sales Price AED 25,847,000 | Rent AED 1,000,000 |
DAMAC Hills 2
First up on our list of areas offering the highest ROI on buying villas in Dubai is DAMAC Hills 2. This community features some of the best affordable villas in the city and is equipped with all the amenities needed for a convenient lifestyle.
One reason for its popularity is the abundance of green spaces within the community. As a resident, you will have plenty to do here.
ROI FOR VILLAS IN DAMAC Hills 2
If you can’t decide whether to invest in Dubai or Abu Dhabi real estate, DAMAC Hills 2 could be an attractive option considering its high projected ROI of 6.66%.
On average, a 3 and 4-bed villa for sale in DAMAC Hills 2 is priced at AED 1.82M and 1.97M. The asking rate rises to AED 3.30M for a 5-bed villa.
FIND AN AGENT
Looking to buy a villa in DAMAC Hills 2? Connect with these agents for expert advice and the best opportunities.
JUMEIRAH VILLAGE CIRCLE
Taking the second spot on our list is Jumeirah Village Circle. It is known for offering a family-friendly space, fostering a sense of community.
Location is one of its key advantages as residents enjoy direct access to Mohammed Bin Zayed Road (E311), making the commute hassle-free. Among the areas discussed in our Abu Dhabi vs Dubai analysis, Jumeirah Village Circle is well-suited for people who prefer a serene locality with lots of open green spaces.
ROI FOR VILLAS IN JUMEIRAH VILLAGE CIRCLE
Investors can expect to earn an ROI of 6.58% on villa properties in the area.
A 3-bedroom villa costs AED 3.35M on average, while buying a 4-bedroom villa in the area will cost you AED 3.52M, on average. The sales price for a 5-bed villa in Jumeirah Village Circle averages around AED 4.8M.
To put things in perspective for how much rental returns you can expect on buy-to-let villas in Jumeirah Village Circle, the 3 and 4-bed houses here are rented out for AED 198k and AED 213k, respectively. The average rent for a 5-bed villa in Jumeirah Village Circle is AED 232k.
FIND AN AGENT
Looking to buy a villa in Jumeirah Village Circle? Connect with these agents for expert advice and the best opportunities.
Al BARARI
Next up, we have villas in Al Barari. This quaint community with lush green landscaping is a growing investment hub. Residents enjoy a classic suburban lifestyle, and the district is perfect for those who prefer living in a tranquil locality.
Being located on Al Qudra Road (D63) means that the commute to other key areas in Dubai is simple. Another reason for Al Barari’s popularity, especially amongst families, is the availability of reputable schools nearby.
ROI FOR VILLAS IN AL BARARI
A lucrative ROI of 6.45% is why investors are keen on buying villas in Al Barari.
The average sales price for a 4-bed villa in Al Barari is AED 7.67M. It increases to AED 25.8M for a 5-bed villa.
The asking rent for 4-bed villas in Al Barari average at AED 1.61M, where as the 5-bed houses can earn you an average annual rental income of AED 1M.
FIND AN AGENT
Looking for luxe villas for sale in Al Barari, these agents can help find the perfect property for you.
TOP THREE AREAS TO BUY A VILLA IN ABU DHABI WITH HIGHEST ROI
Like Dubai, the UAE capital also has many quiet suburban villa communities where you can get all the urban amenities. If you’re looking for villas for sale in Abu Dhabi that can serve as ideal investments, we’ve got the best ones lined up for you.
Villas in Abu Dhabi are available in different layouts. So, you need to decide which unit is more suitable for you. Here’s an overview of the expected ROIs and asking prices in the popular neighbourhoods.
Neighbourhood | ROI | Unit Size | Sales Price | Rent |
|---|---|---|---|---|
Neighbourhood Hydra Village | ROI 8.56% | Unit Size 3-Bed | Sales Price AED 1,001,000 | Rent AED 86,000 |
Neighbourhood Al Reef | ROI 6.61% | Unit Size 3-Bed | Sales Price AED 1,748,000 | Rent AED 116,000 |
Neighbourhood Al Reef | ROI 6.61% | Unit Size 4-Bed | Sales Price AED 2,284,000 | Rent AED 146,000 |
Neighbourhood Al Reef | ROI 6.61% | Unit Size 5-Bed | Sales Price AED 2,554,000 | Rent AED 158,000 |
Neighbourhood Al Raha Gardens | ROI 6.10% | Unit Size 3-Bed | Sales Price AED 2,690,000 | Rent AED 165,000 |
Neighbourhood Al Raha Gardens | ROI 6.10% | Unit Size 4-Bed | Sales Price AED 3,326,000 | Rent AED 195,000 |
Neighbourhood Al Raha Gardens | ROI 6.10% | Unit Size 5-Bed | Sales Price AED 4,251,000 | Rent AED 223,000 |
HYDRA VILLAGE
Hydra Village ranks first on our list of areas offering the highest ROI on villas in Abu Dhabi. The neighbourhood offers a family-oriented and suburban lifestyle. The community has dedicated play areas for kids and plenty of other modern amenities.
ROI FOR VILLAS IN HYDRA VILLAGE
The projected ROI for Hydra Village villas is 8.56%. Given the general trend of the market, you can expect a good profit in the long run.
If you want to buy a 3-bed villa in Hydra Village, the average sales price is AED 1.01M. On the other hand, you can rent a 3-bed villa in Hydra Village for AED 86k per annum.
AL REEF
The second entry on our list of Abu Dhabi localities with the highest ROIs is Al Reef. Located on Abu Dhabi’s outskirts, it is perfect for people who regularly commute to Dubai.
Moreover, commuting around Abu Dhabi isn’t a problem with the well-connected road network. This area was specially developed, keeping in consideration the middle-income group. So, you can find excellent properties at reasonable prices.
ROI FOR VILLAS IN AL REEF
Villas for sale in Al Reef offer an expected rental return of 6.61%. Check out Al Reef floor plans to find the property that suits your needs best.
The average sales price of a 3-bed villa in Al Reef stands at AED 1.74M. The 4 and 5-bed villas for sale are priced at AED 2.28M and AED 2.55M, respectively.
Those who plan to let the properties can expect to fetch AED 116k on average rent for a 3-bed villa in Al Reef. The 4 and 5-bed villas in Al Reef can be rented out for AED 146k and AED 158k, respectively.
FIND AN AGENT
Find a reliable agent in Al Reef to find your dream home in the area.
AL RAHA GARDENS
If you are looking to buy a house in Abu Dhabi, villas in Al Raha Gardens can be a good option, as you can expect excellent returns on your investment. Alternatively, if you plan to live with your family, Al Raha Gardens is a peaceful neighbourhood equipped with world-class facilities.
ROI FOR VILLAS IN AL RAHA GARDENS
Are you still pondering about Dubai vs Abu Dhabi investment? Al Raha Gardens’ growth potential and luxury quotient might sway your decision in favour of the UAE capital.
You can expect a return of 6.10% on your investment. Have a look at the Al Raha Gardens floor plans to get a better idea of property designs in the area.
The average sales price for a 3-bed villa in Al Raha Gardens is AED 2.69M. Whereas for a 4-bed villa, it averages at AED 3.32M. For a larger 5-bed villa, you will have to pay AED 4.25M, on average.
On the flip side, a 3-bed villa for rent in Al Raha Gardens can earn you AED 165k annually. The 4 and 5-bed villas can be rented out for AED 195k and AED 223k, respectively.
FIND AN AGENT
Here are Al Raha Garden’s top agents who can help you find your villa.
FREQUENTLY ASKED QUESTIONS
WHERE CAN I LEARN MORE ABOUT DUBAI’S REAL ESTATE MARKET?
Read our Bayut & dubizzle’s Dubai H1 Property Report 2025 to understand the trends of the city’s property market.
WHERE CAN I LEARN MORE ABOUT ABU DHABI REAL ESTATE MARKET?
For the capital emirate, you can read our Bayut & dubizzle’s 2025 H1 Abu Dhabi market report to analyse trends over the past quarter.
That wraps up our Abu Dhabi vs Dubai investment analysis. You can also get insights on the cost of living in Dubai vs Abu Dhabi to further evaluate the two choices.
We hope this post helps you decide whether you should be buying a villa in Dubai or Abu Dhabi. Both Dubai vs Abu Dhabi villa investments have their own merits. It all depends on your current plans, long term goals, budget and personal preferences.
To know more about the UAE real estate market, don’t forget to follow MyBayut.
*Please note that prices and ROI quoted above are based on the data sourced from Bayut at the time of publishing.
