What kind of property offers a higher rental value in Dubai?
After making the life changing choice and moving to Dubai, you might be wondering where to live. Dubai offers various areas, all suitable for different preferences. Whether you’re into the vibrant urban environment surrounded by boasting skyscrapers, or quieter surroundings away from the continuous hustle and bustle of the city, you can find a home appropriate for your needs. We’ve put together a list of different types of properties and areas that offer the highest rental value, considering factors such as location, number of bedrooms, amenities and privacy.
Whether you’re here short or long term, Dubai offers an array of properties with apartments placed in key locations. Naturally, this will affect the value of the property, depending on the proximity to academic institutions, leisure areas or nearby shopping centers, increasing its rental cost. However, the property value is a dependent variable that is also affected by the service levels provided in the building. Luxurious skyscrapers such as SLS and The 118 require higher maintenance and upkeep, than buildings in JVC or Damac Hills. Buildings that offer 24/7 security and concierge services, along with valet parking will increase the service charge of the building, ultimately impacting the rent of the apartments.
Data shared by Bayut, one of the top property search portals, states the current rental rates for apartments in Dubai. Annually, the average two bedroom apartment rental rate ranges from AED 40K – AED 70K in areas targeting tenants with a tight budget. Naturally, the service level of the building, along with the number of bedrooms it features will increase its value, along with the rental cost, entailing that this rate range can fluctuate depending on the building and/or apartment location.
Popular areas such as Dubai Marina and Downtown Dubai have higher rates, with two bedroom apartments ranging from 90K – 130K. The difference in price can be attributed to its location, given that these apartments are situated near popular shopping centers, leisure establishments and tourists attractions.
If you’re new to Dubai and kickstarting your career, we can suggest searching for roommates and splitting the cost between all occupants. This can curtail your living expenses drastically, helping you save more of your monthly income.
Villas and townhouses
Relocating your family, adapting to a new country and its culture always comes with its challenges. Starting a new life and choosing a new home can seem like a daunting task, but we assure you that selecting from an array of different architectural styles in various locations across the city won’t be an issue. Real estate professionals in agencies like Betterhomes can simplify the process and help you find the right fit for you.
The most relevant options for families seeking a peaceful and quiet environment away from the urban hassle, are villas located in Mirdif, Dubai Silicon Oasis, Arabian Ranches, Damac Hills and other areas headed towards the northeastern side of the city. Like the apartments, the value of the property will be mostly affected by the proximity to academic institutions, shopping centers, and leisure establishments. According to Bayut, two bedroom houses’ annual rate starts from AED 50K and can scale up to AED 170K for the most spacious and luxurious villas equipped with private amenities such as pools, jacuzzi, gyms and saunas.
The same source claims that a 3 bedroom villa rental rate starts from 115K per annum, whereas a 4 bedroom villa rental rate ranges between AED 90K and 200K. A 5 bedroom villa rental cost can peak up to AED 1.1M, however all of the rates detailed above are subject to the variables previously mentioned in this article. Assess your budget and decide what you’re looking for. Whether it’s a nearby school, a shopping mall or your favorite leisure establishments.
What offers the best rental value?
From a professional standpoint and a careful assessment, we can say that apartments offer the best rental value, given that most expats experience Dubai as a transitory period in their lives. Most apartments are located in the urban district, giving you access to nearby shopping centers, leisure establishments and even academic institutions, in case you decide to enroll in one of them. With better security and close proximity to the downtown district, it makes them the better option for tenants to live in.