Which are Dubai’s three best areas for high-yield rental investments

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Dubai as a city has consistently ranked among the top performers among international cities in the past few years. International real estate consultancy firm Knight Frank said the emirate’s prime residential market emerged as the fourth most active in the world, according to its 2023 Wealth Report.

Similarly, Resonance Consultancy which ranks global destinations on multiple criteria, named Dubai the fifth-best city in the world in its report for World’s Best Cities for 2023.

The UAE city consistently rubs shoulders with international cities such as London, Paris, New York, and Tokyo, for experiences, governance, and its breadth of real estate offerings. According to Knight Frank’s research, with 219 $10m+ home sales during 2022, Dubai ranks just behind New York (244 sales), Los Angeles (225 sales) and London (223 sales).

It adds that the city’s stellar rise is underscored by the fact that Dubai is now the fifth most active city for $25m home sales as well, with 26 last year. Only London (43), New York (43), Los Angeles (39) and Hong Kong (28) rank higher.

In order to sift through the vast trove of data and help new investors enter Dubai’s high-performing real estate market, an AI-based platform Realiste has released its list of top three high-yield rental areas in the city.

Realiste calls itself an AI proptech company specialising in enabling investors to make data-driven decisions in real estate.

The list recommends locations for property investment with a focus on renting. These include profitable areas for short-term rental and long-term rental (occupancy, legal part, profit). The list also suggests an investment strategy that could give the most profitable investment returns.

High-yield rental areas

1. Blue Waters: This area is awarded 6.5 points by Realiste.

Background: In 2022, the price of apartments here was two times lower than what is the current market rate. The area is developed as a
mixed-use community with high-end shops, brands, infrastructure and the beach, in close proximity.

Strategy: This area is recommended for those looking to become a long-term investor as residential properties will pay off 100 per cent.

2. Jumeirah Beach Resorts: JBR awards this prime area at about 4.5.

Background: Due to its location, JBR has a community with a high standard of living

Strategy: It is necessary to adhere to a short-term strategy. Despite the fact that this is a good location with new buildings, the price
increase is not likely to exceed five per cent.

3. Jumeirah Lakes Towers: This area is currently the top location as per Realiste.

Background: JLT is populated all year round, with the population mostly comprising expatriate workers working in Dubai.

Strategy: The rental is 30 per cent cheaper than in JBR, but it’s still quite high. The infrastructure in the area is well developed, with
good accessibility, and has seen consistent demand. This area is great for both long-term and short-term strategies.

 

Alex Galtsev, the founder of Realiste, said, “Our objective is to leverage AI technology to help investors make informed and profitable decisions. As the real estate landscape evolves, we are committed to delivering the most accurate market analysis possible.”

Realiste’s proprietary platform offers in-depth market analysis, aiding users to understand where and in what projects to invest for optimal appreciation and a return on their investment.

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