What are the top 5 areas in Dubai with the highest rental returns?

hello and welcome to experience reality my name is tarun what are the top areas for rental returns in Dubai what do you mean by Roi is it risk of inaction or return on investment where do I get the highest Roi on my property a few of the common questions which I come across on a daily basis in my line of work as a property consultant well well before we get the ball rolling let me clarify Roi is not risk of inac although in Dubai's real estate market today it's a very apt term as this is something that prospective investors who are looking at taking the plunge and buying a property but decide not to will have to contend with this feeling Roi indeed is return on investment in simple terms it is your property's rental returns in a percentage and how do we calculate it simply divide your property's annual returns buy the purchase price and multiply it by 100 Bingo here you have it now coming back to where we started from what are the top areas for rental returns in Dubai now I don't want to bore you by the same map again and again which I probably see more than my wife and son but got no choice the map is a property consultant and a prospective investors or a homeowner's best mate imagine how difficult would it be for me to give you perspective without taking you through this map and as my boss correctly says it 90% of the sales happen on the map and if you have to open the brochure you've already lost the client and the boss is always right I could not have agreed more with him on this now boiling down to the meat of the Matter What are the top five areas to invest in Dubai the first area which I feel is a great Prospect for rental returns in Dubai is mrr beachfront now mrr beachfront is located within the tourism Hub of Dubai now the tourism Hub of Dubai which consists of Blue Waters by miras Dubai Marina and jbr Mr beachfront itself and pal jera is a place which 85% of the tourists coming to Dubai visit 65% of the tourists coming to Dubai actually live here now the location of Mr beach front within the tourism Hub is very strategic if you see sh Z road which is one of the major most lifelines of Dubai you can access Mr beachfront easily from shik Zed road which means you do not have to contend with the traffic of Dubai Marina or jbr which people visiting those areas have to contend with so unique location strategic location within the tourism Hub now what makes Mr beachfront so different this is a oneof a kind development by IM properties on an 88,200 m Island which boosts 24 Towers now these 24 Towers out of them 12 happen to be branded by the biggest Hospitality brands of Mr we all know and we all understand that branded residences command a premium which could be 20 to 25% more than non-branded ones and the rental returns for Branded residences are a totally different Prospect compared to unbranded residences besides that mrr beachfront is the only Community which boasts a gated private beach of 1.9 km a waterfront of 2.2 km it is a city within a city where the tourists or visitors can have everything which they need for their daily needs they do not really need to go out of here now the other important aspect which we cannot ignore when it comes to mrar beachfront and Rental prospects is mrr beachfront has the Dubai Harbor right next to it now Marine tourism as we all know is the most expensive tourism okay so these Harbors will have 14,000 passengers disembarking here on a daily basis now you can well imagine that these passengers or these tourists will be seeking accommodation in projects like Mr beachfront so you have a ready Market a ready client which will be Wy to rent your property now if we delve deeper newer projects or communities which are upcoming often command or get higher rental returns why because you're buying at Off plan prices so when you do your returns calculation the price that you bought it at is at 30% lower compared to similar properties so definitely no points for guessing your ENT returns are going to be higher so in the case of Mr beach front imagine if I would have bought a beach Vista one bedroom not so long ago for 2 million dhams today I could have made a rental return of around 218,000 dhams on it which is 10.8% of returns you do not get figures like this and by the way this community is only 20% complete imagine the scope of returns and rentals when the community is fully completed and ready so Mr beach front is an amazing Prospect for rental my second option or the area that I reckon has exponential prospects of rentals will be Dubai Creek Harbor now to understand Dubai Creek haror we will rewind and go back in time and you will understand why I'm taking you back in time so imagine is 2006 you are a prospective homeowner or an investor looking to buy in Dubai now you go and meet a property consultant who tells you sir or ma'am please do not invest in downtown as it is a big project God knows if Mr can execute it they are building the tallest tower you know it's a long shot so he advises you to invest elsewhere now fast forward come back to 2024 prices around downtown and B Khalifa are between 4,000 to 4500 dams per square foot what started trading at 1100 1200 dams per square foot has grown and reached 4 4,000 to 4500 Dam per square foot so I'm sure you will not be chuffed with that property consultant now me I don't want to be that property consultant whom you will remember for the wrong reason I want you to remember me for all the right reasons so Dubai Creek Harbor is downtown 2.0 in making now downtown and BJ Khalifa area has become a tourism Hub yeah we all know this anyone and everyone coming to Dubai has to go to downtown to see the fountain to go visit Dubai Mall to see the spectacle that BJ Khalifa is so this area is very very crowded Metro connectivity is a bone of tension at times you know parking can be intimidating now all of those things for all the good reasons of downtown there are certain flaws now those flaws have been sorted in downtown 2.0 which is Dubai Creek Harbor so Dubai Creek Harbor five entries and exits four Metro stations three times the size of downtown park space of 700,000 M for your family for the elders in your family for your pets even better retail space of 900,000 M you have the Square Mall coming up on Dubai Creek Harbor then 300,000 s m of office space so pretty much a city within a city we all know Mr has an exceptional track record of forging communities where everyone feels connected so if you go to Dubai Creek Harbor today where the Creek island is almost fully handed over you will not feel that this is a construction site because you have everything that you need at your beckon call there is hotels there is hospitals there is restaurants there is cafes operational Parks everything is up and running now this happens to be only a fourth of the project that is completed prices started at500 Dam per square foot and they have reached until 2400 D per square foot since this is an emerging Community there is immense scope for capital appreciation and the rentals in this area in lie of proximity to the icons of Dubai like bsh Khalifa downtown Dubai International Airport accessible within 15 minutes and this entire area which is very significant so I'm going to highlight this area largely leasehold 60% of the population till date lives and works from this area since is leas hold two communities will draw major benefit from this one was downtown in B Khalifa which is free hold and the other one is Dubai Kaba which is in close proximity to these areas so people living here or working here will be moving to Dubai Creek Harbor so organic demand now to understand the rental prospects of Dubai Creek Harbor what we need to see is imagine if I would have bought a one bedroom at 1.4 million dams not so long ago in one of the buildings in Dubai Creek Harbor now I can put it on short-term rental on a weekly basis for around 3500 DHS yeah 3500 dhams times 4 like 4 weeks in a month it heals me around 14,000 dams for the month now I would be very conservative I will say that we will rent only for 10 months yeah which is 140,000 dhams for the whole year you have 2 months to use the apartment the rental returns are 10% so you know awesome prospects now let's delve into the long-term renting Prospect of this now if you see address Harbor Point one bet roll renting at you know which you bought for 1.7 million again not so long ago is renting at 180 to 200,000 dham yielding you a rental r return of 10.58% what else would you want Dubai Creek Harbor has awesome potential for rentals and as I told you earlier this is an emerging community so the prospects and the numbers are only going to go up my third area for rental returns in Dubai and in community which I really really believe in is none other than Dubai hills estate now Dubai Hills estate is something that had a lot of non-believers or naysayers when Amar launched Dubai hills estate people were very skeptical they were like who's going to go and live here it's in the middle of nowhere it's got an industrial area in front of it again come back to 2024 and you see this community is a force to be reckoned with and it would not be a far cry to say that this is the very center of Dubai if I were to fold this map of Dubai into four Dubai hills estate is right at the center of Dubai it will give you access to all the major areas of Dubai within 20 to 25 minutes maximum Dubai estate is very strategically located you know it is like right on alale road all right and and it is flanked by umak street now alil Road as we all know is the second busiest Road in Dubai okay which connects you to downtown connects you even takes you on the airport and UMAS squim Street which we see right here is also very very significant now why umak street is significant is because UMAS Street connects you to all the lifelines of Dubai starting from Shak side then alkin then Muhammad bin Zed then Zed bin hamdan Alan Street and Emirates Road making all destinations smoothly accessible and all returns calm and Serene living in and urban Living Community connectivity is a big big plus Point Dubai HS state has that going for it now again I will not be repeating myself Mr is exceptional and excellent and in fact I don't have superlatives to you know tell you about the kind of communities they have come up with now Dubai hills estate I think will be the top of uh the communities that Mr has come up with so if you look at this community it's 11 Square kilm in size again a city within a city I know I've been using this word a lot but we've been speaking about Mr communities and that's what they are so why Dubai hills estate is a city within a city is called two international schools within the community yeah you have the second largest mall in Dubai in Dubai Hills State now this mall has 450 branded retail outlets has the largest indoor roller coaster anywhere in UAE and the other important things that you need to look at in Dubai hills estate it ALS so has a fully functional Business Park which is home to some of the biggest companies in fact do has their office there and imar also has their head office in Dubai hills estate and my office also happens to be in Dubai hills estate now also consider this duai hills estate has the largest and the most werent and the best kept Park which is 1.2 km long in the the community not many developers would give you this kind of space in a community they would rather build Apartments vas and make money but imar being imar values space for its residents and this is what distinguishes and separates imar from other developers besides that Dubai hills estate has one of the best hospitals in Dubai the King's College Hospital God forbid if you have an emergency and you need to access a hospital at your beckon call now what was launched in 2016 again has gone from strength to strength and prices in Dubai hills estate have reached around 2200 dams per square foot now if we speak about rental prospects in Dubai hills estate allow me to engage you a one bedroom building named Collective is renting today at 110,000 dham not so long ago people bought it for 950,000 11.57% rental returns a two-bedroom in akashia on the park bought at 2 million dam is renting today at 180,000 dams a year again 9% rental return so Dubai Hills is State again is a community which even if Mr wants to replicate and do it again is going to take them a long long time because such communities are not easy to replicate a community with an award-winning championship for 18ho whole Championship Golf Course a community which you know takes all the criterias for investors as well as end users and as I told you about the rental returns there aren't too many communities which would give you or yield such rental returns for you so Dubai H's estate in my opinion is an amazing area for rentals in Dubai my fourth area for rental returns in Dubai as cliched as it may sound would be downtown okay now everyone and anyone in the world knows about BJ Khalifa they know about the downtown area and the by so you know you have an organic marketing happening in lie of the spectacle that bush Khalifa is in lie of the beautiful fountain that is there and that people want to see at you know at all cost if they're visiting Dubai and then you have the giant Dubai Mall which last year had 110 million visitors all of this means you know organic marketing for your community so think about it besides B Khalifa besides toai Mall besides the fountain and all the highrises that happen to envelop downtown there is much more to the location now why downtown is so so sought after there is a reason to this the reason is if you pay close attention you have DFC right here you have Trade Center right here now DC happens to be one of the leading Financial Centers in Middle East North Africa as well as southeast Asia if you look at the strength of thefc it employs around 43,000 people it has of the top 10 bands in the world seven are based in DC of the top five insurance companies five are there in DFC and if if we look at startups and you know all the new tech businesses and everything else DFC is at the Forefront of everything so thec plays another very significant part in taking and elevating downtown to the next level now the other part which plays and adds to the charm of downtown is the proximity to the World Trade Center as well now just last year World Trade Center had 1.08 million visitors of them 65% were overseas V visitors now these visitors came to Dubai to attend conferences and exhibitions and again all of these people would have made sure that once they were done with the exhibition they would have gone to this area so they either prefer to live in downtown or they visit downtown so your community will always have demand downtown as we all know is fairly saturated land Parcels do not exist new developments are very difficult to come by so this as a community is something where Supply is very very limited except a few of plan projects demand is exponential because everyone wants a piece of downtown now everyone wants a piece of downtown another important aspect as I was highlighting earlier in the case of Creek Harbor this entire area is Le hold you cannot buy here only two freeold communities downtown and Creek Harbor anyone and everyone who has made money here or has money would either prefer to live here or in downtown so the options are fairly limited downtown will always be the pulsating heart of Dubai and it always continue to have that demand which it has today because it's very difficult to replicate something like this it's not easy even Mr would have a tough time replicating downtown so if you look at the average rentals in downtown you're talking about 140,000 dhams for a one bedroom on an average yeah B Khalifa view Canal View we're talking about higher rals 140,000 is an average figure now now the important thing to explore in case of downtown is the prospect of short-term rentals this area yields results which not many can replicate so if you were to invest like or rather if you bought you know a branded residence like address let's say address Dubai M for 2 million dams yeah with a bush Khalifa view you're not going to rent it for less than 1,000 dams a night and believe you me people people will be waning to rent your room so 1,000 dham a night time 30 those are the days in the month is 30,000 dams a month and I would again be very conservative although you have 110 million visitors you have the IFC you have World Trade Center you have B Khalifa the entire Spiel again you will only rent for 10 months that means 300,000 dhams as a yearly lentil so if you look at the pros spe your short-term rental returns from this area can go up to 14.8% as is the case as I was telling you very hard to replicate downtown will always be downtown demand is exponential Supply is teeny weeny so acquire downtown if you have the money because downtown in the near future will be unobtainable at 4,000 to 4500 D pert believe you me this area is a steel the fifth area that I would highly recommend would yield exponential returns and has great Prospect for rentals and I'm taking you back to the tourism Hub of Dubai it would be Dubai Marina now we all know Waterfront is fairly limited tight you know here and you cannot really buy anything or develop here because it is all leasehold this entire area the Golden Belt is under development Palm jabali is under development so whoever is visiting Dubai and with Dubai being at the Forefront of vacationing by the Sea and you know the preferred tourism destination world over we need more Waterfront which we are working on so the Supply right now is fairly limited but the demand is there is great and this is why Dubai Marina till date holds it's value why because if I want to go for a station let's say Eid holidays you know what are my options my options are these only or I can go to rasil kma or go to fuera or you know some other Emirate or probably some GCC country so Dubai Marina in Li of that will never lose its value it is something which was relevant 10 years ago and will also be relevant in the near future as to replicate something like Dubai Marina it is very difficult the list of Pros for investing in Dubai Marina is exhaustive let's say this area sustains and supports residents and tourists with a plum so you know be it the Metro connectivity the only Community to have a tram proximity to schools colleges hospitals some of the most iconic beaches Beach Clubs restaurants cafes water sports or base King in the sun on a white sandy beach this area strikes all the right cords although fairly old compared to the newer developments of Dubai real estate this area is still going strong both on short-term rentals as well as long-term rental prospects a one-bedroom has an average rental year of 120,000 Dam now what you need to understand about Dubai Marina is that except for a few Towers which are new branded most of these buildings are fairly old now Dubai real estate is fairly young it's only 25 years old you know because all of this development that Dubai has done is in the last 25 years and Dubai Marina was one of the first few projects you know which saw the skyscrapers and you know the glitz and the glamour come to Dubai so the buildings are slightly on the older side compared to the newer ones but imagine someone who bought a one-bedroom here for 700,000 and is today commanding a rental return of 120,000 D per year on it is you know grinning from year to year so Dubai Marina in Li of that will never lose its value it will always stay there at the zeni when it comes to rental returns so my humble opinion if you have an opportunity invest in Dubai Marina because it's only going to get better old is gold remember this finally I'm pretty sure you and me are on the same page now now what we need to understand is this is real estate you know it's not one side size fits all Different Strokes for different folks I gave you what I in my opinion believe are areas for the best possible rental returns in Dubai or the prospects of renting in these areas is great now if you understand I have followed a pattern and the pattern that I have followed is investing in communities investment in communities will always hold its value and that's for a reason because communities attract investors with Deep Pockets or end users and even so the communities that I have touchbased on today or have recommended to you all happen to be from one developer and no points for guessing it is AMR properties their legacy is emblazoned on this map you know behind any and every successful project in Dubai you have one name that comes up it is IMR properties a leader in the world of real estate a leader in the realm of developing maintaining and nurturing communities and this is where you should be investing because with their track record with their pedigree you cannot go wrong so the communities which we spoke about today Dubai Creek Hub IMR properties Dubai hills estate IMR properties downtown IMR properties and not many know actually Dubai Marina before it was abandoned was also finished by imar properties so you can very well understand what kind of a developer we are talking about investing in real estate you need to think about three criteria areas these are super duper important number one is the developer do not compromise on that front number two is the contractor who is executing the projects and last but not the least the operator who is operating the project once it is delivered and with imar you are safe and sound and secure on all fronts I'm sure there will be a lot of people who will say that these are not the best possible areas to be investing in Dubai but I can get you to understand if you have time let's meet let's discuss and let's explore in case you need any further information or need Clarity please feel free to reach out to me until then this is tarun saying sayar [Music]

Channel: Xperience​ Realty

Views: 9,564

Keywords: Property Management, Real Estate, Property Development, Rental Returns, Best Areas, Top 5, Dubai, Dubai Property, Investment Returns, Middle East, Rental Income, Expats in Dubai, Real Estate Investment, Property Investment, Property Market, Dubai Areas, Investment Opportunities, Dubai real estate, investment opportunities, rental yields, property investment, high ROI, real estate market, investing in Dubai, profitable areas in Dubai, rental return

Id: cDG4Am-z1YA

Length: 30min 0sec (1800 seconds)

Published: Sat Apr 20 2024