Do you want to know where to buy property in Dubai and how much it cost? If YES, here are 10 best places to buy properties in Dubai to get an excellent ROI.
Dubai has grown to become one of the best places in the UAE that provides convenient business setup procedures. Dubai has transformed itself from a small-time trading nation to a global business destination. Within four decades, Dubai has achieved a buoyant economy. Located on the Persian Gulf, next to the Gulf of Oman, the city of Dubai is a renowned global city whose importance in the global economy is almost unparalleled.
Why Buy a Property in Dubai?
Due to its strategic position, actively-diversifying economy, and excellent trade relations and prestige, Dubai is a unique location for businesses looking to expand or invest, especially into Middle Eastern, North African, Central and South Asian markets, or anyone looking to do business in the Middle East Region.
Dubai has established itself as an emirate on its oil industry and that industry has fueled its current success as a cosmopolitan metropolis. But, in terms of total GDP, which reached 90.9 billion USD in 2012 and has grown roughly 10% over the past two years, oil and gas only contributes around 8%.
Its largest sources of revenue currently are real estate and construction, various financial services, and information technology. Due to the construction boom which instigated the construction of the Burj Khalifa, the world’s current tallest building, Dubai boasts state-of-the-art infrastructure and also benefits heavily from extensive telecommunications and widespread connectivity.
When it comes to real estate, there really is no city quite like Dubai. It is a home to very unique and impressive structures as well as spectacular attractions that will leave you stunned. Thanks to the presence of a plethora of futuristic, cosmopolitan projects and uniquely designed residential communities, the emirate is a haven for property investors.
The upcoming projects for Expo 2020 are also contributing to creating more investment opportunities in Dubai for buyers. With the market favoring buyers in the past few months, the time is certainly perfect for those looking at property investment in Dubai.
There is a long list of freehold areas in Dubai that investors can choose from and it is important to choose the right location. Choosing the right area is essential for Dubai real estate investments, as it can affect the ROI you can expect from it in a few years time.
Even though according to Property Monitor, the rental yields overall have declined by a minimal 0.20%, you can still benefit from an attractive rental yield of 6.23% YTD on average. With prices flattening, capital appreciation at this point might be less, but we expect long term gains leading up to 2020.
Dubai altogether is a working nation but one of the primary factors for choosing an investment property is the location. Some of the best locations to invest in Dubai are nearby offices, business hubs, or tourist spots. Below are some of the best locations to buy property in Dubai.
10 Best Places to Buy Property in Dubai and How Much It Cost
- Dubai Marina
Dubai Marina is the most popular area for buying apartments in the UAE, generating the highest number of user searches and surpassing other popular neighborhoods in Dubai. An unprecedented choice for the stylish and sophisticated, the Dubai Marina area is one of the most sought-after neighborhoods in Dubai.
This impressive community boasts of luxury skyscrapers, a huge range of dining and entertainment options, and best of all, it offers urban waterfront living to its residents.
Dubai Marina is a meticulously-planned community, complete with a seamless network of roads and a picturesque marina, filled with luxury yachts. It is a true testament to master developer, Emaar Properties, who turned a 3km strip of shoreline and the 50 million sq. ft. area into a modern neighborhood that offers a chic Riviera-style lifestyle to Dubai residents.
A pivotal feature of this multi-purpose neighborhood is a large canal stretching over 3.5km providing access to the sea on both ends. Potential residents can choose from an assortment of luxurious apartments in high-rise buildings, set against the gorgeous backdrop of the marina. The launch of Emaar’s ambitious Bluewaters Island project also points to the location’s long-term allure as one of the best areas for investment in Dubai property.
Apartments in Dubai Marina are considered high-end properties with a wealth of amenities. The asking prices for apartments in Dubai Marina have remained more or less stable, pointing to a bright future for those investing in property here. The average asking price for studios in Dubai Marina is AED 800k, 1-bedroom flats are going for AED 1.15M and 2-bedroom units are at AED 1.9M. The ROI for the flats in Dubai Marina stands at 6.4%.
- Downtown Dubai
Downtown Dubai which is better known as the ‘centre of now’, is home to the Burj Khalifa, The Dubai Mall and Mohammed Bin Rashid Boulevard. The area is known for the luxury high rise apartments in the heart of Downtown and the more quaint apartments in Old Town.
The appeal of the area is guaranteed to last with the Burj Khalifa being one of the most visited tourist attractions in the world. Downtown Dubai is consistently popular for investing in Dubai apartments thanks to its proximity to many attractions in the city.
According to reports, prices are predictably on the higher side with studios averaging at AED 920k, 1-beds going for AED 1.45M and 2-bedroom units fetching a cool AED 2.7M, but this still does not take away from the appeal of the apartments in Downtown Dubai thanks to a solid secondary market and high rental yields which average at 5.4%.
- Sheikh Zayed Road Dubai
Known as the most iconic road in Dubai, the Sheikh Zayed Road possessed a hand-full of building on the deserted stretch in the early 80’s. However, by 2005, with the expansion of businesses in Sheikh Zayed Road, the area became among the best commercial hubs of the world, with gigantic infrastructural and diversified commercial setups.
This Sheikh Zayed Road runs corresponding to UAE’s coastline with construction wonders and extensive connectivity.
The jurisdiction is not just a road, but an area contributing to the flourishing economy of Dubai, housing some of the leading companies in the world. Right from professional companies, to world-renowned brands, from business ventures to global corporate leaders – the region also provides some of the high-rise infrastructure of the city. The E11 route of Dubai is the longest road that passes through three Emirates – Abu Dhabi, Dubai and Ras al-Khaimah.
Though the Sheikh Zayed Road starts from the center of Dubai, near the interchange junction of the Trade Center Roundabout, following the metro line, the road also connects the newer developments of the city. The Sheikh Zayed Road further goes ahead of Jebel Ali road making way through Abu Dhabi. These geographical attributes make Sheikh Zayed Road a demanding place when corporate entities consider offices for rent in Dubai.
- Dubai Sports City
The Dubai Sports City is situated along the Sheikh Mohammed Bin Zayed road corridor and it is close to the Al Maktoum International Airport. It provides a mix of residential and commercial properties along with retail and sports facilities.
The area is among the first communities to embrace the Dubai Government initiative of reducing carbon emissions. As the first step in this direction, all normal sodium street lamps were replaced by solar-powered LEDs. It also plans to create a solar farm to reduce load on the Dubai grid and generate savings for the community.
Renowned as a 50million square feet sports complex that’s perfect for the most sportive people in Dubai, it is home to five major sporting venues.
Dubai International Cricket Stadium, Rugby Park and the Els Golf Course are some of the favorite venues, and this location is also home to the exclusive villa community at Victory Heights. Given the market conditions, a Dubai Sports City Apartment could result in up to 9.17% of rental returns annually. Price-wise, the value of the properties have declined over the past 6 months by 1.90%.
- The Springs
The Springs, which is a part of the Emirates Living Community is another major residential area for Dubai property investment. This Emaar Community is an ideal choice to invest in Dubai thanks to its proximity to schools, an amazing range of recreational facilities and quiet neighborhood.
The average price for a 3-bedroom villa in The Springs is AED 2.3M while 4-bedroom units command just over AED 2.7M. It is set amidst great landscaping and scenic waterways. It has over 4,800 townhouses and offers its residents access to community retail centers, restaurants, cafes, swimming pools and more.
- Bur Dubai
Bur Dubai is considered the oldest commercial space retaining the rustic feeling of old Dubai Heritage. Bur Dubai is situated in the center of the city, lying on the south side of the Dubai Creek, across the water of Deira – the area comprises of Al Fahidi, Al Ghubaiba and parts of Al Shindagha. Bur Dubai has key historic sites in the region – including the Dubai Museum, The Ruler’s Court along with some of the earliest souks in the city.
Bur Dubai contrasts with Dubai, while the city represents a commercial and a metropolitan setting, Bur Dubai showcases the rich tradition of the middle east. A prominent commercial sector in Bur Dubai, is the hospitality industry.
With the historic places, heritage village and the waterside path featuring a line-up of dhows offering dinner cruises – Bur Dubai makes an ideal location for tourism and the hotel business. Also note that the trading sectors – such as the gold trader, spices trader and the textile industry along with enormous Small and Medium Enterprises (SME) are another magnetism towards business setup in Bur Dubai.
The jurisdiction also provides networking among various commercial entities, efficiency of governmental procedures and convenience of business setup. This neighborhood is also home to many restaurants, art galleries, cafes, boutique hotels, and interesting shops.
- Business Bay Dubai
Business Bay is the brainchild of the Dubai Government’s vision to mold this city into a definitive business hub, thus the region of Business Bay acts as a central business district for various commercial proceedings in Dubai. Business setup in Business Bay proposes excellent company formation possibilities and delivers various opportunities to diverse business modules, so that large corporates as well as SME’s can be a part of this business community.
Business Bay provides a well-established business environment and has been a major contribution to boost the economical upsurge in the city. Another aspect of company formation in Business Bay is that the jurisdiction is not completely limited to commercial space but also offers residential and leisure ventures, depicting the metropolitan lifestyle of Dubai.
Business Bay is stretched across 46.9 million square feet – most of the area caters to real estate businesses followed by trading and professional companies. A significant part is also occupied by the retail sector and the entertainment industry. Business Bay is situated near the Dubai International Financial Center (DIFC), alongside the world’s tallest tower Burj Khalifa.
It has more than 240 buildings comprising both residential and commercial structures. It is one of the fast-developing areas of Dubai with an ever-increasing demand for property. With major roads, schools, malls, medical, recreational and other amenities in its proximity, the Business Bay is definitely one of the best areas for investment in Dubai.
- Jumeirah Village Circle
Located in one of the affluent suburb crammed with all the facilities needed to live the good life: desirable properties, art galleries, boutiques, lovely parks and beautiful people. This area of Dubai is a soap opera neighborhood in the making, with some of the well-heeled female residents being dubbed the Jumeirah Jane set.
Considered one of the fastest growing locations in Dubai, the Jumeirah Village Circle is also a short drive from the Expo 2020 pavilion and Dubai’s major business attractions. In the first three quarters of 2015, it was ranked the 2nd highest for move-in rates in Dubai and is just 20-minutes away from the Al Maktoum International Airport.
This city has a peaceful village setting with the latest amenities and it houses over 2000 luxury villas and exclusive townhouses. It is an ideal place for families and has two international schools, a community center, clubs, and medical facilities. It offers easy access to all main arterial roads to Dubai Marina and Jebel Ali.
Add to it the competitive pricing of the properties, real estate investors have shown an increasing interest in this location. There are several projects located here, which are of a really high quality, including Belgravia 1,2 &3 as well as Belgravia Heights. Other high quality developments include Hameni by Zaya. Current rental yields are at 7.92% YTD. Prices have declines in the past 6 months by 1.83%.
- Palm Jumeirah
Palm Jumeirah is an upscale location, and eclectic projects have placed it as one of the most reliable places to invest in Dubai real estate. According to experts in real estate, Dubai’s Palm Jumeirah will peak when the luxury Palm Beach Residences and Raffles projects are completed.
Over the last few years, Palm Jumeirah’s location and amazing projects have made it one of the most reliable locations for real estate investments in Dubai. Apart from apartments, the Palm Jumeirah is also famous for luxury villas. A high demand in the secondary market adds to the allure of buying a property here.
- Al Sofouh
Situated along the western coast of Dubai, it is one of the most prominent areas in Jumeirah. It stretches across 7 sq. km. towards the north-western side of Dubai Marina – another high-profile neighborhood in the region. Linked by two bridges, the magnificently designed Palm Jumeirah lies perpendicularly towards the west of the progressive community.
Made up of several new real estate establishments, Al Sufouh includes many clusters of free zone developments such as Dubai Internet City, Dubai Media City and Dubai Knowledge Village. It also contains an important historical site that features extensive areas of the ancient Arab civilization.
Accommodating over 3,000 people and numerous waterfront properties, the development is segmented into two districts, which are Al Sufouh 1 and Al Sufouh 2. The former district begins from Umm Suqeim Street, close to where the road intercepts with the toll highway called Sheikh Zayed Road.
The southern Al Sufouh 2 is located opposite of Palm Jumeirah which has many leisure, entertainment and retails options. Situated within the community is the educational hub, Dubai Knowledge Park.
As the name suggests it contains various educational institutes such as Middlesex University, University of Wollongong, University of Manchester and more. The area houses a few institutes, tutoring centers and academic service providers. The community has its own park, a conference center and many administrative complexes.
Al Sufouh is also a platform for the business hubs of Dubai Media City and Dubai Internet City which houses the offices of leading global organizations in their respective fields. Canon, Dell, Hewlett Packard, Facebook and Samsung are just a few of the companies who have their offices located in Dubai Internet City.