January 2024

Best rental yields in Dubai 2024

Find out what is a good rental yield in Dubai

Investing in property in Dubai is a brilliant option for both resident and international investors. The low, sometimes non-existent, property taxes, visa incentives and very high rental yields make it an attractive place to invest.

Read on to find out the best locations for property investment, where to achieve the best rental yields in Dubai, and what to think about if you’re a foreigner investing in real estate.

 

Table of contents
  1. What are the best locations for property investment?
  2. Is buying real estate a good investment?
  3. What is a good rental yield in Dubai?
  4. Why invest in property in Dubai?
  5. What taxes do you pay on rental income in Dubai?
  6. Can foreigners buy property in Dubai?
  7. Is now a good time to invest in property in Dubai?
  8. Short, mid or long-term?
  9. Invest in Dubai with GuestReady

 

1. What are the best locations for property investment in Dubai?

According to our data sourced by the Global Property Guide, the highest-yielding areas of Dubai for real estate investment are currently JLT (for studios) and Jumeirah Village Circle (JVC) for one, two and three-bedroom apartments. The best rental yield for four-bedroom homes can be found in Dubai Marina.

The most expensive areas to buy a one-bedroom apartment are Palm Jumeirah and Dubai Downtown, while good value can be found in Al Furjan and Arjan.

Here is a list of the best rental yields in some of the best neighbourhoods to buy real estate in Dubai in 2024:

 

Best rental yields in Dubai JVC JLT Downtown BB

Buy-to-let Jumeirah Village Circle (JVC)

  • Annual yield: Between 7.34% and 8.38.
  • Cost to buy: Between $168,803 and $593,743
  • Monthly rent: Between $1,179 and $3,630

Jumeirah Village Circle is a development that contains over 350 apartment buildings and townhouse rows. It began construction in 2005, and is built over an area of 870 hectares. The current estimated population is 25.000, but this is expected to grow to as much as 300.000 when the development is complete.

The average rental yield for JVC is 8.38% for a studio and 8.24% for a one-bedroom apartment. The yield drops slightly for bigger apartments, at 7.63% and 7.34% for two and three-bedroom apartments, respectively.

The average sale price in this area is currently one of the lowest in Dubai, at just $168,803 for a studio and $247,760 for a one-bedroom apartment. Its affordability makes it a great place for new real estate investors.

 

Buy-to-let Jumeirah Lakes Towers (JLT)

  • Annual yield: Between 9.07% and 5.14%
  • Cost to buy: Between $190,585 and $952,925
  • Monthly rent: Between $1,441 and $4,084

Located on the shores of three artificial lakes, the Jumeirah Lakes Towers (JLT) development has 80 towers over a total area of 1.8km squared. The development is close to Dubai Marina in the northwestern area of the city.

It has a reputation as one of Dubai’s most community-focused neighbourhoods, with diverse residences and lots happening daily. There are brilliant parks, many local restaurants and eateries, and some tremendous co-working specials for freelancers and business professionals.

JLT offers impressive stats in terms of rental yields. For a studio, you can expect a yield of 9.07% – the highest in Dubai. Then, the yields sit at 5.81%, 5.67%, and 5.14% for one-, two-, and three-bedroom properties in JLT, respectively.

Given that the average cost of a studio is just $190,585 and you can expect a monthly rent of $1,441, JLT is the best place in Dubai to buy a studio, offering an excellent buy-to-let investment opportunity.

 

Buy-to-let Downtown Dubai

  • Annual yield: Between 4.37% and 6.79%
  • Cost to buy: Between $381,034 and $6,234,855
  • Monthly rent: Between $2,155 and $22,689

The Dubai Downtown was renamed from Umm Al Tarif in 2000 and is home to some of Dubai’s largest and most famous landmarks. The region is currently home to approximately 13,000 people and is home to a mix of residential, leisure and tourism buildings.

The average rental yield for studios in Downtown Dubai sits at an impressive 6.79%, though the average buy price is currently $381,034, making it one of the most expensive parts of the city in which to buy.

As for apartments, you can expect yields of 6.36%, 5.95%, and 5.83% for one-, two-, and three-bedroom apartments, respectively.

 

Buy-to-let Business Bay

  • Annual yield: Between 5.58% and 7.48%
  • Cost to buy: Between $291,323 and $1,170,736
  • Monthly rent: Between $1,815 and $5,445

Business Bay is a CBD (Central Business District) in Dubai, containing residential, office and commercial developments, many of which are skyscrapers. The population, once the development is fully complete, is expected to be approximately 190.000 people, with even more people employed in the region.

If you rent out a studio in the Business Bay area of Dubai, you can expect a rental yield of 7.48% from an average buy price of $291,323. Apartments in the Business Bay are relatively expensive, with a one-bedroom average buy price sitting at $457,404 at the start of 2024.

However, if you can afford to buy here, rental yields for apartments are impressive. You can expect 6.55%, 5.79%, and 5.58% from one-, two-, and three-bedroom rentals in the Business Bay, respectively.

 

Best rental yields in Dubai Marina Al Furjan Arjan

Buy-to-let Dubai Marina

  • Annual yield: Between 4.72% and 6.31%
  • Cost to buy: Between $353,944 and $2,164,502
  • Monthly rent: Between $1,860 and $8,508

Dubai Marina is an artificial marina and canal city situated on the shoreline of the Persian Gulf. It is currently home to approximately 55.000 people, but when completed should have accommodation for up to 120.000 people.

The average rental yield for studios in Dubai Marina is 6.31%, with studios fetching an average of $1,860 per month in this area of the city. For apartments, you can expect 6.57%, 6.67%, or 6.86% for one-, two-, and three-bedroom apartments, respectively, highlighting the excellent buy-to-let opportunities in and around Dubai’s artificial marina.

 

Buy-to-let Al Furjan

  • Annual yield: Between 6.02% and 8.06%
  • Cost to buy: Between $145,661 and $376,337
  • Monthly rent: Between $1,021 and $2,042

Al Furjan neighbours Jebel Ali Village, and it is gaining a reputation as one of Dubai’s most outdoor-friendly neighbourhoods, with green spaces, bike tracks, and shared swimming pools all available to residents. There are more than 4,000 apartments, villas, and hotels here.

Buying a studio is a great buy-to-let option, with an average buy price of just $145,661. A studio can fetch an average monthly rent of $1,021 in Al Furjan, which translates to a yield of 8.41%. If you’re in the market for an apartment, you can expect a yield of 7.29% for a one-bed and 6.51% for a two-bed. Overall, Al Furjan is another excellent buy-to-let community in Dubai for you to consider.

 

Buy-to-let Arjan

  • Annual yield: Between 6.02% and 8.41%
  • Cost to buy: Between $168,803 and $451,958
  • Monthly rent: Between $1,134 and $2,269

Arjan is a relatively new district in Dubai, located on the city’s outskirts. Al Barsha South borders it and consists of 50 completed buildings, with more than 30 currently under development. Arjan is home to the Dubai Butterfly Garden and the Dubai Miracle Garden, both popular with visitors.

As part of the Dubailand megacity project, Arjan is an exciting and up-and-coming district with lots to look forward to. If you invest in a studio in Arjan, you can expect a yield of 8.06%, one of the highest in the city. One and two-bedroom apartments deliver a yield of 7.31% and 6.02%, respectively, making this newly established area a great buy-to-let option in Dubai.

 

Best rental yields in Dubai city map

 

GuestReady is an international short-term rental management company present worldwide and professionally managing properties around the globe. Are you planning on starting a short-term rental business? Get in touch with our team of experts today.

 

2. Is buying real estate in Dubai a good investment?

Dubai’s booming tourism sector and low mortgage registration fees make it an excellent place to invest in real estate. On top of this, those buying real estate will benefit from some of the best rental yields in the world and very low (or non-existent) taxes on their income.

 

3. What is a good rental yield in Dubai?

In addition to the high rental yields, property is cheaper per square foot than many other places in the world. In addition to this, the absence of many typical property taxes such as stamp duty land tax and capital gains tax makes it a very attractive market for real estate investors. Lastly, in many cases, if you buy property in Dubai you are entitled to a residency visa. The length of the residency visa is roughly proportional to the value of the property that you buy.

 

4. Why invest in property in Dubai?

Dubai’s booming tourism sector and low mortgage registration fees make it an excellent place to invest in real estate. On top of this, those buying property in Dubai will benefit from some of the best rental yields in the world and very low (or non-existent) taxes on their income.

 

5. What is the tax on rental income in Dubai?

There is no income tax for those working in the United Arab Emirates, even if you are not a full-time resident. Instead, tenants of properties pay a rental tax. If you are not resident in Dubai then you may still have to pay income tax on the rental income in the country that you reside in. There is currently no capital gains tax in the UAE.

 

6. Can foreigners buy property in Dubai?

Yes, investors of any nationality and residency can purchase property in Dubai, provided it has been allowed by His Highness the Ruler of the Emirate of Dubai. Foreign investors often choose to invest in real estate because of the high average rental yields and cheaper finance options.

 

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7. Is now a good time to invest in property in Dubai?

Dubai’s economy is once again thriving, and with increasing property prices and rents, 2024 is a great time to invest in both short-term and long-term rentals in Dubai.

 

8. Short, medium or long term?

Long-term rental investments tend to be lower-yielding, but many investors choose this route because it is seemingly easier to achieve and gives a more secure return due to stable rental demand. Long-term rental investments tend to be better suited to residential and academic areas of a city.

On the other hand, short-term rental investments, like Airbnb accommodation, produce much higher yields for investors. These types of investment properties are better suited to touristic areas, of which Dubai has many.

 

9. Invest in Dubai with GuestReady

GuestReady is a short-term rental management company that assists those looking to invest in Dubai real estate at every stage of the process. We can provide you with estimated figures of returns on particular investment strategies, and help you to start a profitable short-term let business.

We provide 24/7 communication with guests in several languages, deal with reservations management, online listings optimization, and provide cleaning services and maintenance management, among many other services.

Dubai is a fantastic place for real estate investors to purchase and retain both long-term and short-term rental properties. The high yields of up to 9%, relatively low property prices and numerous tax and visa benefits make it a great market to invest in property.

If you’re planning on buying real estate in Dubai, GuestReady will help you understand the expected return for your property or future property and present you with short and mid-term rental management plans for a hassle-free new business. To find out more, calculate your income, or fill out the form and our experts will call you.

 

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