Top 5 Dubai Residential Communities to Invest In

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  • A number of communities in Dubai still yielding 7+ percent
  • Areas with new supply like Town Square, and old favourites like Dubai Marina amongst those who stayed strong

On par with recent years, property prices in Dubai are witnessing a sustained decrease. If you are a buyer or a renter, the market is certainly in your favour. However, if you are an owner, depending when you purchased your property, you may be looking at having to decrease your asking price to a potential buyer or renter. While the overall market is depressed, there are a handful of communities that are witnessing a growth in prices or are otherwise seeing only a marginal weakening rather than rapid declines. Read on to see where we find it advisable to invest.

You may have had a friend or colleague recently discussing Town Square. This up and coming community has been making waves for its affordable duplex villas. At the intersection of Al Qudra Road and Emirates Road, the relatively new development by Nshama has grown to be one of the most popular and equally stable communities. For an average of AED 920,000 you can get a 2-bedroom 3-bath apartment in the brand-new Hayat Boulevard or in the sleek Zahra building. For small and growing families, you can snag a 3-bedroom townhouse for AED 1.4 million or 4-bedrooms for less than AED two million, all in a thriving community with upcoming retail outlets, Reel Cinema, a central park, up to 13 Km of cycling trails and a number of international schools. Although these communities are new, data already shows an 8-9 percent yield.

Mira, also known as Reem, offers a variety of affordable villas and townhomes from Emaar. With all the fixings of any contemporary community, including a community center, sprawling parks, community pools, a skate park and a newly announced dog park which will be the first of its kind in any Emaar community. Since the last handover in 2017, prices have remained stable and have increased .10 percent from last year. Rental yields also held since 2017 at 7.2 percent and are higher compared to Arabian Ranches, 5.3 percent and Damac Hills, 4.5 percent. The asking price of a 3-bedroom villa averages AED 2.2 million and 4-bedrooms hover around AED 2.6 million.

Popular for its affordability in the apartment category, Sports City has remained consistent in providing rental yields between 7.0-8.7 percent per year. At AED 895 SQ/FT as of Q2 2017, current prices experienced a slight decline and cost AED 890 SQ/FT as of today. Studios go for AED 500,000 or less, while 1-bedrooms range from AED 550,000 to 700,000.

Another admired and consistent community is Studio City. The Danube developed Glitz apartments were well received by the market where studios go for AED 500,000, 1-bedrooms for around AED 800,000 and 2-beds for just over AED 1 million. Price depreciation has been minimal; AED 1,037 SQ/FT in 2017 decreasing marginally to AED 1,095 SQ/FT in 2018. Yields are high at 7-8 percent also. Danube’s modular design and square footage utilization have made this community very popular. What’s more is the efficiency of being able to convert a 1-bedroom to a 2-bedroom, with the push of a wall.

You didn’t think we would forget about Marina, did you? Everyone talks about Marina, and that is for good reason as this area is not only a popular spot to live but also remains a solid real estate investment. While property prices decreased from AED 1,615 SQ/FT as of June 2017 to AED 1,500 SQ/FT as of June 2018, this community is as lively and sought after as ever. Despite the decline in value, you can still expect to yield 6.4 percent; the same as last year’s figure. Offering a range of options from a few townhouse communities to an array of apartments, resplendent with city or beach views, transaction data shows that property prices have remained stable in the Marina.

With an energetic backyard full of international restaurants and cafes as well as public beaches, five-star hotels and the much-anticipated Ain Dubai, soon-to-be the world’s largest ferris wheel, on Meraas’ iconic new Bluewaters Island, the discerning investor would be right to sink some cash here. Leading up to 2020, developers will be busy constructing new supply such as the much-anticipated 1 JBR, The Address Jumeirah and the Vida Residences with the Emaar Beachfront to come late 2021, all sure to be snapped up by those savvy investors as they go to market.

With an abundance of housing and investment options in Dubai’s real estate market it is important not to just invest—whether it is for personal use or to diversify your portfolio—in the trendiest area, but to invest in a property with a stable value that will provide good returns while retaining its worth for years to come.

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