Resale value and rental yields are holding strong in these projects
While sale prices in the Dubai property market have favoured home buyers in the last few years, the continuing drop may be causing concerns for investors or those buying to let where resale value and rental yields are more important.
If you fall into this category of buyer, you’ll want to know which communities are holding their value over time.
Below is a round up of 5 communities that have bucked the trend to record price increases or only slight losses over the last two years, according to Property Finder’s transactional data.
TOWN SQUARE
Price Change: N/A — New development
Rental Yields: 8 – 9%
This up-and-comer has been making waves recently for its affordable duplex villas.
At the intersection of Al Qudra Road and Emirates Road, the relatively new development by Nshama has become popular, and that demand means prices are staying steady. For less than one million dirhams, you can get a 2-bedroom, 3-bathroom apartment in the brand-new Hayat Boulevard or in the sleek Zahra building.
For small and growing families, you can snag a 3-bedroom for AED 1.4 million or 4-bedrooms for less than AED 2 million, all in a community with upcoming retail outlets, Reel Cinema, a central park, 13 KM of cycling trails and international schools. Although these communities are new, data already shows an 8-9% yield.
MIRA (Reem)
Price Change: 10%
Rental Yields: 8 – 9%
Mira, also known as Reem, offers a variety of affordable villas and townhouses from Emaar. It has all the facilities of any contemporary community, including a community centre, sprawling parks, community pools and a skate park. A dog park, the first of its kind in any Emaar community, has also been announced.
Since the last handover in 2017, purchase prices have gone up 10%. Rental yields also held since 2017 at 6.9%, and are higher compared to Arabian Ranches at 5.3%, and Damac Hills at 4.5%. A 3-bedroom villa averages AED 1.8 million and 4-bedrooms hover around AED 2.3 million.
SPORTS CITY
Price Change: – 0.56%
Rental Yields: 7 – 9%
Popular for its affordability in the apartment category, Sports City has consistently offered rental yields between 7-9% per year. Average price per square foot is AED 890, remaining relatively stable after having dropped just AED 5 per square foot since Q2 2017. Studios go for AED 500,000 or less, while 1-bedrooms range from AED 550,000 to AED 700,000.
STUDIO CITY
Price Change: + 0.98%
Rental Yields: 8 – 9%
Another admired and steady standby community is Studio City. The Danube developed Glitz apartments were well-received by the market where studios go for AED 500,000, 1-bedrooms go for around AED 800,000, and 2-bedrooms for just over AED 1 million. Apartment values have actually increased marginally; from AED 1,022 per square foot in 2017 to AED 1,032 per square foot in 2018. Yields are high as well at 8-9%. Danube’s modular design and efficient square footage utilisation have made this community very popular. The innovative design allows a 1-bedroom to be converted into a 2-bedroom with the push of a wall.
DUBAI MARINA
Price Change: – 7.12%
Rental Yields: 6.4%
You didn’t think we would forget about Dubai Marina, did you? Everyone talks about the Marina, and this is for good reason — being a consistently popular spot to live in, it remains a solid real estate investment.
While property prices decreased from AED 1,615 per square foot as of June 2017 to AED 1,500 per square foot 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%; 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 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 to invest — whether it is for personal use or to diversify your portfolio — not just in the trendiest area, but also to invest in a property with a stable value that will provide profitable returns and retain its worth for years to come.
Check out properties for sale in these communities.
