Suburban areas in Dubai are now popular for buying properties to rent out. The number of people moving there has increased the demand for housing, pushing up prices throughout the city's real estate market.
Dubai's real estate market presents opportunities for investors to earn rental income at varying price points. Population growth and significant projects like the Al Maktoum International Airport expansion are boosting rental profits in prime areas and suburbs. According to Arabian Business, landlords are poised to capitalise on Dubai's appetite for housing with off-plan purchases in communities offering lower entry points and the prospect of appreciation upon completion.
Best Areas for ‘Buy-to-Rent’ Properties in Dubai
Prices continue to rise across Dubai, with no location untouched by rental increases.
Best areas for buy-to-rent in Dubai
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Downtown Dubai
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Meydan
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Emirates Living
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Jumeirah
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Dubai Marina
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Palm Jumeirah
These areas are in high demand, with tenants willing to pay a premium to live there, indicating the potential for high rental income to remain.
Some other popular residential areas offering high rental returns include
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Arjan (8.4%)
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Dubai Sports City (8.4%)
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Jumeirah Village Circle (8%)
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Downtown Dubai (up to 5%)
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Business Bay (up to 5%)
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Dubai Marina (up to 5%)
These communities attract new expats and young individuals, ensuring high rental demand and high yields for investors. Tenants seeking city-centre living highly prefer these neighbourhoods.
Areas Witnessing a Recent Surge in Rental Demand
Dubai South is witnessing a recent surge in rental demand and popularity. Downtown Jebel Ali has experienced a 16% increase in rental demand year-on-year, and Dubai Investment Park has seen an 8% rise during the same period. Investors focusing on long-term goals can anticipate returns slightly above 10% in these locations as Dubai South prepares to become Dubai’s central hub in the coming years. The expansion of Al Maktoum International Airport has fueled a lot of interest in Dubai South and Expo City. Potential growth will be seen in Dubai Creek Harbour and the launches of new villa communities in Dubailand.
Suburban areas that are also experiencing a fast-growing rental demand include
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Dubai Science Park (15%)
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Dubai Studio City (12.4%)
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Mudon (11%)
Developing communities are experiencing increased rental demand, with advanced facilities set to be delivered in the future, including:
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Jumeirah Village Circle (JVC)
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Tilal Al Ghaf
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Dubai Hills Estate
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Dubai Creek Harbour
Areas Offering Long-Term Growth Potential
Dubai South offers long-term growth potential in the coming years. Investors purchasing off-plan properties now can expect the highest return on investment because these units are currently available at lower prices. As the community grows and attracts more renters, investors will benefit from substantial capital gains upon completion.
If you're looking for investments that are likely to appreciate shortly, consider suburban areas like Dubai South and Tilal Al Ghaf.
Prime city centre areas offer investors the security of a long-term investment. They are already fully developed and flourishing, providing increasing rental demands and future sales, ensuring strong capital appreciation. These areas include:
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Downtown Dubai
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Dubai Marina
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DISC
Are you interested in purchasing an off-plan investment or ready home or apartment in the best areas with long-term growth potential? Contact us through our contact page or register your interest through our project form. Cielo is dedicated to providing sophisticated investment opportunities that bring high rental yields and future sales.