The strongest rental returns for inexpensive property buyers, at up to 11%, are found in apartments in Dubai Investments Park, Discovery Gardens, and Liwan, according to Bayut’s most recent report.

Based on expected apartment rental yields, Dubai Sports City, Dubai Silicon Oasis, and Motor City have become very attractive possibilities with returns as high as 10%.

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Green Community, Al Sufouh, and Damac Hills all offered rental returns of more than 8%, surpassing the benchmarks set by the majority of international markets, according to Bayut’s first-quarter analyst.

Compared to big cities like London, New York, Hong Kong, Mumbai, and others, where rental returns normally range from four to seven percent, all of these places in Dubai provide substantially greater rental yields. More crucially, compared to other major cities worldwide, the cost of quality real estate is substantially lower here.

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Despite ongoing global uncertainties, according to Haider Ali Khan, CEO of Bayut and head of Dubizzle Group Mena, Dubai’s real estate market remains promising. Current market trends, investment opportunities, and growth strategies give stakeholders confidence as they navigate the market’s dynamic landscape.

Dubai has proven to be a resilient and attractive real estate market, as evidenced by the rise of new master communities and creative approaches to off-plan constructions. Fostering cooperation and strategic planning will be essential in maximizing profits and establishing sustainable growth in Dubai’s real estate industry as we face the opportunities and challenges that lie ahead, according to Khan.

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Buy-to-let townhouses and villas in International City, according to Bayut, have an average return on investment (ROI) of more than 7%, which makes them a desirable choice for prospective investors. Similar profits of greater than 6% are offered to investors in Damac Hills 2 and The Valley.

Projected ROIs for mid-tier villas in Jumeirah Village Triangle, JVC, and Mudon range from 6% to 8%. Because of its distinctive features and the small number of available villas, The Sustainable City stands out in the luxury villa market with a return on investment (ROI) of above 7%. Tilal Al Ghaf and Al Barari provide strong returns of greater than 6%.

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A 17% increase in rent

Rents for mid-tier apartments climbed by 12%, while rentals for cheap flats increased from 1% to 17%, per Bayut’s data analysis. Luxury apartment rentals, meanwhile, have decreased by as much as 4%.

In average, reasonably priced villas have decreased by up to 3%, whereas Mirdif rental home prices have risen by 1% to 7%. There have been hikes in mid-tier villa rentals ranging from 2% to 17%; in Jumeirah Village Circle (JVC) and Town Square, several bed kinds have had price declines of less than 2%. While four-bedroom properties in Al Barsha and Damac Hills have marginally decreased in price by 12% to 14%, luxury villa rents have gone up by 13%.

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Damac Hills 2 and Mirdif have generated interest in villas, while Deira and Al Nahda have become popular choices for apartments. In the mid-range market, renters have been drawn to Bur Dubai and Jumeirah Village Circle (JVC) flats, while those looking for villas have been drawn to homes in JVC and Arabian Ranches 3. Dubai Marina and Business Bay remain well-liked locations for luxury apartment rentals, while high-end villa rentals are more common in Dubai Hills Estate and Al Barsha.

A discernible upsurge has been observed in the market demand for family villas. Larger family-oriented homes have become increasingly popular in the market, especially in the luxury and mid-tier neighborhoods, suggesting a trend towards more roomy homes and a desire for homes that are family-friendly, according to Bayut.