Sale Prices and Rental Yields in Dubai’s Most In-Demand Communities

Dubai sale prices have continued to decrease in the first six months of 2019, according to Property Finder Trends Vol. 6. This has been accompanied, in many cases, by increases in rental yields with the exception of Downtown Dubai, The Palm Jumeirah, JLT and Al Barsha.

To illustrate this change, we’ve looked at median sales price per sqft in  Dubai’s 10 most in-demand communities for buying, and compared changes in gross rental yields in H1 of this year (Jan – Jun 2019) versus the same period last year (Jan – Jun 2018).

So which communities  have the lowest prices per sqft and registered the most significant changes?

Buying an apartment in Dubai’s most in-demand communities

For apartment buyers, Dubai Marina, Downtown Dubai and Palm Jumeirah remain the most searched-for communities, despite showing the highest price per sqft in 2019.

Despite having the most expensive price per sqft, Dubai Marina remains the most searched-for community for buyers, but showed a very modest increase in rental yields to 6.2% (up from 6.0% in H1 2018).

Rental Yields

For those looking for buy-to-rent opportunities in Dubai’s top 10 most searched communities, the best performing communities when it comes to earning the highest gross rental yields as of H1 2019 are Dubai Silicon Oasis 9.5%, Al Barsha 8.7%, Dubai Sports City 8.4% and Jumeirah Village Circle 8.2%.

The highest increase in rental yields was seen in Al Barsha: 8.7% during 2019 vs 8.1% in H1 2018.

In Dubai Sports City, investors will benefit from an increase in rental yields: 8.4% in 2019 versus 8% in H1 2018. The area’s price per sqft decrease is among the highest recorded. The median sales price per sqft in this area is now AED 775 making it one of the most affordable areas on the top 10 list.

Jumeirah Village Circle’s rental yields also increased from 7.8% in H1 2018 to 8.1% during 2019.

JBR saw less dramatic increases in rental yields going from 5.8% in H1 2018 to 6.3% in 2019.

Going against the upward trend, Palm Jumeirah recorded the most significant decrease in rental yields, dropping to 4.2% in 2019 vs 5.1% in H1 2018.

Most Affordable

According to Property Finder Trends, H1 2019 median sales price per sqft in Dubai Sports City, Jumeirah Village Circle, JLT and Al Barsha are the lowest.

An apartment in Dubai Sports City costs AED 775 per sqft, followed by Jumeirah Village Circle AED 832 per sqft, JLT AED 1,028 per sqft and Al Barsha AED 1,087 per sqft

Median Sales Price per sqft & Rental Yields in Dubai’s Top 10 Most Searched Apartment For Sale Communities: Jan – Jun 2019 vs Jul – Dec ’18

Community Median sales price per sqft Rental Yields H1 2019 Rental Yields H1 2018
Dubai Marina  1,333 6.2% 6.0%
Downtown Dubai  1,963 4.7% 5.0%
Palm Jumeirah  1,735 4.2% 5.1%
Business Bay  1,339 6.6% 6.3%
Jumeirah Lakes Towers 1,028 6.7% 6.8%
Jumeirah Village Circle 832 8.2% 7.8%
Dubai Sports City 775 8.4% 8.0%
Al Barsha  1,087 8.7% 8.1%
Jumeirah Beach Residence  1,329 6.3% 5.8%
Dubai Silicon Oasis  725 9.5% 9.2%

Data source: Property Finder Trends Vol. 6 — the most searched community rankings are based on the percentage of total searches on Property Finder in H1 2019.

Villa Rental Yields: Town Square tops the Charts

With a median sales price per sqft of AED 676, Town Square is also high on the most affordable list. It’s also a good bet for investors looking at buy-to-let properties in Dubai, as villas here show rental yields of 7.8% in the first six months of 2019, the highest of all villa communities in Dubai. This shows good growth from 7.4% in H1 2018.

Rental yields in Jumeirah Village Circle also increased from 5.9% in H1 2018 to 6.2% H1 2019 while Dubai Silicon Oasis’ rental yields have increased between H1 2019 and H1 2018 from 5.3% to 5.5%.

Al Barsha is among the two communities where rental yields have dropped going from 6.3% in H1 2018 to 5.4% in H1 2019.

Emirates Hills is the only community that has not seen any changes from H1 2018 to H1 2019, remaining at 2.6%. With a median sales price per sqft of AED 2,330, this remains the most expensive community in Dubai

Most Affordable Communities

If you are an end-user, villas in JVC are the most affordable with a median sales price per sqft of AED 613, followed by Town Square AED 676, and Dubai Silicon Oasis AED 735.

Al Barsha, Arabian Ranches and the Meadows come next with median sales prices averaging AED 1,050

Median Sales Price / Sqft in Dubai’s Top 10 Most Searched Villa For Sale Communities: Jan – Jun 2019 vs Jul – Dec ’18

Most in-demand communities – Villas Median sales price per sqft Rental Yields H1 2019 Rental Yields H1 2018
Jumeirah Village Circle 613 6.2% 5.9%
Al Barsha  1,038 5.4% 6.3%
Dubai Silicon Oasis  735 5.5% 5.3%
Arabian Ranches  1,036 5.0% 4.7%
Emirates Hills 2,330 2.6% 2.6%
The Meadows  1,074 4.9% 5.2%
Townsquare 676 7.8% 7.4%

Data source: Property Finder Trends Vol. 6 % change in median annual sales prices in Dubai for the most searched areas with villas for sale Jan – Jun 2019 vs Jul – Dec ’18.

Properties for Sale in Dubai Marina

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