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Dubai's International City offers best yields in UAE

22 February 2020

Apartments in Dubai’s International City offer the best yields in the United Arab Emirates, according to the latest Property Finder Trends report.

The apartments offered yields of 10.6 percent in H2 2019 ahead of comparable affordable communities like Discovery Gardens (8.6 percent), Al Barsha (8 percent), Barsha Heights or Tecom (7.9 percent), Dubai Sports City (7.8 percent) and Jumeirah Village Circle, or JVC (7.6 percent).

“Overall, rental yields in Dubai are still regarded as being some of the highest around the world. More mature communities such as Dubai Marina, Downtown Dubai and the Palm Jumeirah stand at 6.3 percent, 4.8 percent and 5.3 percent, respectively,” said Lynnette Abad, director of data & research, Property Finder.

In terms of new villa/townhouse communities, Town Square yields the highest gross rental yield at 7.6 percent, followed by Mudon at 7.3 percent, Reem at 6.4 percent and JVC at 6.3 percent.

While more established villa/townhouse communities like Arabian Ranches (4.9 percent), Motor City (5.2 percent) and Barsha (5 percent) offer smaller yields.

In Abu Dhabi, the affordable community of Al Reef offers the highest gross rental yield for apartments at 8.8 percent. Apartments in Al Ghadeer (7.8 percent) and Yas Island (7.2 percent) are also sought-after by buy-to-let investors.

Apartments in Ajman’s Emirates City provided the UAE’s second best gross rental yield at 10.5 percent. Ajman Downtown (8.7 percent) and Al Hamra Village in Ras Al Khaimah (8 percent) also provided apartment buyers with very good rental returns.

Meanwhile, Al Hamra Village (6.3 percent) and Mina Al Arab (4.7 percent), both in Ras Al Khaimah, offered the best gross yields for villas/townhouses.

Average gross rental yields in London stand at 2.9 percent, Hong Kong (2.35 percent), Sydney (2.85 percent), Singapore (3.3 percent) and Toronto (3.9 percent), while Dubai properties offer over 7 percent gross returns on average.