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4 Neighbourhoods With a High Return on Investment in Dubai

Return on Investment in Dubai

The UAE’s political and economic stability, first-rate cutting-edge infrastructure, and well-established capital markets all contribute to the country’s appeal to investors. The emirate is renowned for offering its people a high level of security, dependability, and quality of life. It also offers a favourable atmosphere and several prospects for economic progress. The investor portfolio reveals that a majority of young investors seek benefit because of the availability of digital platforms, given the strong investment potential across industries. The UAE’s benefits as a global investment hub are highlighted by noteworthy elements, including high return on investments, low risk, investment options for a secure future, and diversity of ETFs.

Over time, the UAE, particularly Dubai, has become increasingly desirable as an investment destination. It is on a constant quest to promote its real estate investment climate and offer investors greater incentives. Without question, it offers unrivalled investment potential, particularly in the sector of financial markets, one of the most robust and lucrative economic sectors. Given that Dubai’s population is expected to grow from its current level of over 3.3 million to 5.8 million by 2040, it is clear that great efforts have been made to promote socioeconomic development and financial stability.

A few neighbourhoods with higher return on investment in Dubai

A strategic position, cutting-edge infrastructure, and a varied and competitive economy are all guided by efficient development planning. Here are some of the most profitable regions in Dubai to invest in.

Business Bay

Business Bay is a city that never sleeps, with sky-high buildings and non-stop entertainment. Although the name may connote ties and suits, Business Bay is one of the liveliest neighbourhoods. It is a dreamy little metropolis brought to life. According to a study, Business Bay is emerging as Dubai’s busiest property buying spot, too. The Dubai Water Canal winds through Business Bay, a constructed waterway connecting Old Dubai to the Arabian Gulf. Its promenade offers the ideal frame for this urban jungle’s outstanding architecture, with each high-rise competing for attention. It is surrounded by thrilling cafes, trendy lounges, and opulent hotels.

properties for sale in business bay

The properties for rent in Business Bay are available in various layouts, ranging from studios to four-bedroom flats. The cost to rent a studio flat in Business Bay ranges from AED 43,000 to AED 85,000 per year. One-bedroom rental apartments range in price from AED 52,000 to AED 550,000 a year, while two-bedroom apartments typically cost between AED 79,000 and AED 210,000 per year to rent. The properties for rent in Business Bay with three bedrooms range from AED 125,000 to AED 775,000 annually, while those with four bedrooms range from AED 125,000 to AED 500,000 annually. Rental properties in Business Bay with one bedroom start at AED 575,000 (USD 156,500). The ROI of the low-cost flats in this area was almost 5.9% in 2020.

Dubai Marina

According to the Dubai Land Department (DLD), Dubai Marina surpassed all other districts in 2020 for the number of high-class properties for rent in Dubai. It has more than 200 luxury residential towers, hotels, office buildings, a variety of eateries, stores, beach clubs, commercial properties in Dubai, entertainment venues, and the sizable malls Dubai Marina and Dubai Marina Walk. The district has a well-developed transportation system that is adequate for the district’s area. There are two metro stations—Dubai Marina and Jumeirah Lake Towers—as well as bus stops, a tram line, and bus stops.

properties for sale in Dubai Marina

The neighbourhood has yacht terminals that hang over an artificial port. In Dubai Marina, most structures provide a beautiful view of the promenade. Essentially, it is a neighbourhood of homes created for seaside relaxation and affluent living. This region appeals to tourists because of its waterfront location. Public and private beaches that are clean and well-attended are accessible to residents and visitors of Dubai Marina. Emaar Properties is the district’s principal developer. In general, the district offers high-end properties for rent in Dubai. This includes studios, one- to four-bedroom apartments, and penthouses. The Marina Gate complex, which consists of premium properties for rent in Dubai, is one of the best-selling developments in the area.

The cheapest property in Dubai Marina costs AED 1 650 000 (USD 450 000), while 1-bedroom apartments start at AED 470,000 (USD 128 000). As far as the properties for rent in Dubai Marina are concerned, these can go as high as AED 47,000 and as high as AED 120,000. The typical ROI for first-class flats in Dubai Marina in 2020 was 6.2%. Although it is an average, depending on a micro-district or project, ROI can be much greater.

Downtown Dubai

Downtown Dubai is one of Dubai’s most well-known neighbourhoods and the city’s geographic, commercial, and tourism hub. The Burj Khalifa, the world’s tallest building, the Dubai Opera, and Dubai Mall, the largest shopping and entertainment complex, are all situated here. This is why the demand for properties for rent in Dubai is higher there than anywhere else.

Downtown Dubai

This neighbourhood has long been a favourite among visitors and new residents alike. Offices of well-known corporations, top-notch hotels, popular retail centres, a wide variety of restaurants and entertainment options, and high-class properties may all be found here. The district offers a range of social amenities that make a living there comfortable. It consists of hospitals, kindergartens, schools, and grocery stores. The district’s strategic intersections make it simple to go from Downtown Dubai to any location within the Emirate; the drive to the airport only takes 15 to 18 minutes.

Downtown Dubai was one of the most well-liked areas for real estate buyers in 2019. Notably, ROI for studios was 7% during that time, compared to 5.6% for 1 and 4-bedroom apartments.

Short-term leases are the most economical kind of rental arrangement. There is a great demand for smaller flats because Downtown Dubai experiences constant heavy tourist traffic. As a result, there’s a good chance you will obtain an ROI of at least 10%. If you are looking for luxury living in the heart of Dubai, St. Regis Downtown Dubai is a brilliant option to consider.

Properties for rent in Downtown Dubai are available for as low as AED 48,000 per year and as much as a startling AED 900,000. The monthly rent for studios in Downtown Dubai ranges from AED 48,000 to AED 145,000. The rent for one-bedroom apartments in Downtown Dubai ranges from 60,000 to 240,000 AED. The 2-bedroom units cost between 80,000 and 490,000 AED annually.

Palm Jumeirah

Private homes and hotels can be found on the artificial offshore islands of Palm Jumeirah in Dubai, United Arab Emirates. The archipelago appears to be a stylised palm tree enclosed in a circle from the air. The construction of Palm Jumeirah began in the early twenty-first century, and Dubai’s significant petroleum revenue partly funded it.

Properties in Palm Jumeirah Dubai

The Palm Jumeirah’s main parts are the trunk, spine, fronds, and crescent. The wide trunk, connected to the mainland by a bridge, acts as the development’s entry. The spine, a slender central axis from which 17 fronds protrude, is joined to the trunk by another bridge. The crescent encloses the remaining sectors almost entirely as a breakwater. To help the seawater circulate, it is separated into three pieces. The spine and crescent are connected by a car tunnel, and a transit monorail travels through the spine and trunk to reach the crescent from the mainland in around 3 miles (4.8 km). The crescent is 10.5 miles (17 km) long and 650 feet (200 metres) wide. A total of 3.1 miles (5 km) in diameter and at least 1,380 acres (560 hectares) of additional land were produced.

The properties for rent start at AED 900,000 (USD 245,000), while prices for villas begin at AED 3,900,000 (USD 1,062,000). The average ROI for a property on Palm Jumeirah hit 6% in the first quarter of 2020. ROI for studios and one-bedroom apartments was 5.4% by the end of 2020, while ROI for two-bedroom apartments was 6.1%. 2020 saw a 3.5% increase in the number of upscale villas on the palm island.


If you are looking to invest in buy-to-let villas, townhouses or apartments for sale in Dubai, you must consider one of the above-mentioned communities. And the team HFRE can be of great help in this regard and all that you need is to contact us at +971 4876 2473 or write your query in detail at info@hfre.ae. We assure that one of our representatives will help you make a well-informed real estate investment decision.

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