Property prices and investment potential across some of Dubai’s top residential areas

Among the UAE’s seven Emirates, Dubai is the most popular for international businesses and tourism, with a growing population that is soon closing in on four million. As more overseas talent and investment flow into Dubai, the housing needs of this city have surged, with many leading developers offering homebuyers and investors an opportunity to live in luxury and earn high rental yields without any tax liabilities.

But which areas should overseas investors consider when buying properties in Dubai? In this blog, we look at the most lucrative freehold zones and compare their prices to understand Dubai’s thriving and vibrant property landscape.

Downtown Dubai – AED 2,500/sqft

Downtown Dubai is home to the world’s tallest building – The Burj Khalifa, therefore, it is no surprise that the area around it commands a high premium. From dazzling fountain shows on Burj Lake to a plethora of shopping, entertainment and leisure opportunities at Dubai Mall, residents of Downtown Dubai enjoy a lifestyle of luxury and opulence.

Developed by Emaar Properties, this 500-acre mixed-use neighbourhood is also home to many other landmarks and is a dream destination for property buyers and investors. The area offers rental yields of over 6% and property prices grew by almost 17% this year.

Creek Harbour – AED 2,600/sqft

Waterfront homes are the most expensive, and living or owning property near the banks of Dubai Creek is a unique experience. Along with spectacular views of the Marina and city skyline, efficient connectivity is another feature of this area as it is just 10 minutes from Downtown and adjacent to the scenic Ras Al Khor Wildlife Sanctuary.

Homebuyers within Dubai Creek have plenty of residential options that include stylish apartments and luxurious townhouses. Property Monitor reported rental yields in the area to be up to 8% with an incredible 23% increase in property prices during the first half of 2024.

Jumeirah Lake Towers (JLT) – AED 1,600/sqft

As a neighbourhood built around the edges of three beautiful lakes and a vast 55,000 sqm community park, Jumeirah Lake Towers (JLT) feature 26 clusters (from A to Z) of tall skyscrapers. Each cluster includes three towers, offering homebuyers diverse options that range from cosy studios to spacious penthouses.

The area is well-connected via two metro stations – DMCC and Shobha Realty. Investors are drawn to JLT as most properties are affordable compared to its expensive northern neighbours mentioned above. Rental yields in the area are close to 9% with house prices growing by over 20% this year.

Jumeirah Village Circle (JVC) – AED 1,400/sqft

For those looking to invest in beautiful villas and townhouses, JVC offers the perfect neighbourhood with over 2,800 villas and 3,000 townhouses that are well-suited for families. As a peaceful community with many reputed schools offering a UK curriculum, JVC is a growing neighbourhood and offers residents over 30 landscaped parks.

With rental yields close to 8% and over 16% growth in house prices this year, this popular family-centric area is catching the interest of investors and buyers from all over the world.

Al Furjan – AED 1,300/sqft

Nakheel Properties is the main master developer behind the family-friendly yet relatively affordable neighbourhood of Al Furjan, which translates to “small village” in Arabic. Located in the heart of Dubai’s Jebel Ali, Al Furjan is a community of over 4,000 homes offering buyers elegant villas, townhouses and apartment complexes.

Close to Ibn Battuta Mall with many schools, parks and healthcare facilities nearby, residents are drawn to the community-focused amenities of the area. Rental yields in Al Furjan are between 6% to 8%, with studios offering the highest yields of up to 9%.

Town Square – AED 1,200/sqft

A masterplan of 750 acres near Dubailand, Town Square is a new community being developed by NSHAMA Group along Dubai’s Al Qudra Road. With nearly 3,000 townhouses and over 18,000 apartments, this residential area is home to 16 landscaped gardens and a range of modern amenities.

Affordable property prices compared to many other expensive neighbourhoods are driving demand and sales in Town Square. The area reported rental yields of up to 9%, with property prices growing double digits in recent months.

Dubailand – AED 1,100/sqft

Dubailand is an exciting mixed-use neighbourhood featuring a blend of residences and commercial spaces. Projects like Arabian Ranches, Falcon City and Mudon are popular choices among buyers and investors looking to acquire affordable properties in this well-connected and sports-centric part of the city.

From apartments starting at AED 400,000 to lavish villas worth millions of Dirhams, buyers have a range of property options to choose from. Dubailand’s rental yields of up to 8% and growing property prices offer investors a chance to maximise their returns.

Emaar South / Dubai South – AED 1,000/sqft

From offering residents an international terminal to Al Maktoum Airport and quick access to Abu Dhabi, Dubai South is a growing residential area with a thriving golf community. With an 18-hole championship golf course at its centre, Dubai South features a range of properties that include park-facing villas, luxury townhouses, apartments and more.

Due to its world-class amenities and efficient connectivity, combined with affordable prices, Dubai South is currently experiencing a rental explosion. While annual yields are as high as 20% this year, property prices have also surged by 15% in the same period.

At Benham & Reeves, we bring you the best residential investments in Dubai and across the UAE through our local offices and property experts in the country. If you are looking to explore additional investment benefits like Golden Visa and tax concessions or have any other property-related queries, reach out to us.

(Source for Dubai property prices and rental yields: Bayut, Property Finder, Property Monitor)