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This blog will discuss some of the best places to put money into real estate in the UAE, primarily based on factors like apartment yields, capital boom capability, infrastructure, and amenities.
Dubai
Dubai has become a prime destination for real estate investment over the past few decades. With a growing population, a thriving economy, and pro-business policies, the Dubai property market attracts global investors looking for solid returns. As per the recent data and report from DX Binteract, Dubai’s total sales volume and value reached AED 122.3 billion in Q4, 2023, rising by 12% QoQ & 50.8% vs. Q4 2022, respectively.
Various communities and projects launched across different locations in Dubai offer attractive investment options. As per the listings on TopLuxuryProperty.com , some top-performing areas for buying off-plan properties include Jumeirah Village Circle , Palm Jumeirah, Dubai Hills Estate , Downtown Dubai , and Business Bay. These locations are well connected to the city via roads and metro, have a good supply of amenities, and offer lifestyle features like proximity to the waterfront.
Specifically, Jumeirah Village Circle has seen significant appreciation over the past years and currently offers 3–4 bedroom apartments starting around AED 600,000. Upcoming projects like Exotica , Danube Eleganz , and Cello , with convenient amenities, are expected to see further capital growth. Dubai Hills Estate, the perfect residential community launched by Emaar, has seen robust sales for projects like Emaar Park Gate villas priced around AED 11 million and offering a premium lifestyle amidst greenery.
Downtown Dubai remains the most iconic location, with its mix of business, leisure, and residential spaces. Projects like Mercedes-Benz Places and Baccarat Residences provide apartments with Dubai skyline views starting at AED 9 million. Business Bay is another high-demand area close to the Dubai International Financial Centre, with rent yields of over 5%. Vela Viento Residences by Omniyat and Bayz 101 by Danube are two recent additions to this micro market.
For longer-term rental income, Palm Jumeirah, shaped like a palm tree when viewed from above, is one of the most iconic locations in Dubai, known for luxury residences and resorts. Projects like Armani Beach Residences and Orla Infinity offer sea-facing apartments and villas ideal for capital appreciation and rental yields over 5%, given the high demand from tourists and expatriate residents.
Areas like Sobha Hartland and Damac Hills also generate steady returns year over year, supported by established infrastructure and amenities catering to residents. Specific projects like UTOPIA Urban Resort Villas offer 7BHK starting at 850,000 AED with outsized appreciation.
ROI calculations for off-plan purchases also factor in payment plans that reduce capital outlay and risks. Selectively choosing communities based on location, developer track record, and future connectivity helps target 10% annualized returns over 5–10-year hold periods for buy-and-hold investors in Dubai. Ongoing government initiatives to further urbanize existing communities and launch new districts like The Oasis will continue to drive real estate demand in the emirate.
Abu Dhabi
Abu Dhabi ranks second in our “Best area to invest in UAE” list. Its stable economy and growing urban infrastructure offer lucrative investment prospects for real estate investors. Some top-performing areas for properties in Abu Dhabi include Yas Island, Al Maryah Island, Bloom Living, and Saadiyat Island.
Yas Island has established itself as an iconic leisure and entertainment destination in Abu Dhabi, home to Ferrari World and Yas Marina Circuit. Upcoming projects like Sama Yas offer sea-facing apartments starting at AED 1.9 Million, with solid appreciation given the island’s popularity among tourists and residents. Aldar’s developments, like Aldar Selina Bay , offer more affordable options of approx. AED 960,000 catering to end-users. As of now the highest ROI for apartments here is 8.46% for 4-bed apartments, and for a 3-bed villa highest ROI is 5.25%.
Al Maryah Island is another masterpiece community by Mubadala Development Company in Abu Dhabi. It provides easy access to key business districts. Projects like the Hilton Residences will provide investment opportunities for rental demand from corporate occupiers. Nearby Al Maryah Vista 2 has seen capital appreciation since delivery, making it an attractive investment holding.
Saadiyat Island is emerging as Abu Dhabi’s cultural destination and will be home to key museums like Guggenheim and Zayed National Museum. Projects launched in its early phase like The Source 2 , offer luxury sea-facing apartments priced over AED 2.8 Million for the long run as the island develops further.
The upcoming mixed-use community Bloom Living off the E11 highway presents a promising location for mid-income housing. Projects like Granada offer 2 BHK starting at AED 591,000, provide 5-6% rental yields, and have scope for price increases.
You can also consider low-density developments like Ohana By The Sea villas in Ghantoot priced around AED 6.3 Million, catering to the HNI segment looking for weekend homes close to Abu Dhabi.
Overall, selectively buying units from credible developers in these prominent Abu Dhabi communities helps target returns of 8-10% annually in rental income and capital appreciation.
Sharjah
Located adjacent to Dubai, Sharjah offers attractive real estate prospects for investors looking for stable returns. Some top-performing areas include Maryam Island and Masaar.
Maryam Island is a waterfront community ideal for quality living and returns. Upcoming projects like Rehan Residence will complement established options like Jawaher Residences, priced around AED 728,000 which have proven high rental demand. The island benefits from proximity to Sharjah’s urban centers.
Masaar is integral to Sharjah’s vision to enhance living standards and lifestyle. Low-rise residences like Arada Saro villas priced at AED 1.8 Million cater to homeowners and investors given the growing demand for spacious units in the emirate.
Other popular locations for real estate investment include Khor Fakkan, with its laidback coastal charm, Al Juraina, and Al Rahmaniya, offering affordable apartments, and Kheshisha, near the American University of Sharjah, with stable student housing potential.
Factors like freehold ownership proximity to Dubai and Sharjah’s economic growth are helping drive consistent capital appreciation. Projects deliver 5-8% average annual rental yields. Purchasing ready units helps offset holding costs and risks. Carefully selected off-plan properties in locations like Maryam Island and Masaar targeting the AED 800,000-1.5 Million price bracket to meet financial objectives of capital protection, rental income, and 10% returns over 5-10 years.
Sharjah’s improving infrastructure, like waterfront developments and business hubs make it an appealing market. The stable property values and long-term prospects for areas with amenities and demand drivers make real estate a favorable asset class.
Ras-Al-Khaimah
Emerging as a new development, Ras Al Khaimah offers attractive prospects for real estate investment given its thriving economy and affordable prices compared to other UAE emirates. It include top investment hotspots like Hayat Island, Al Hamra Village, and Al Hamra Island. Hayat Island is a waterfront locality with projects like Nasim Lofts By RAK Properties apartments priced around AED 5,50,000 that provide good rental yields of 5-7%. Upscale developments like Quattro Del Mar cater to HNI buyers looking for capital appreciation.
Al Hamra Village lies just off the E84 highway connecting Ras Al Khaimah and Fujairah. Low-rise villas like Falcon Villas priced at AED 1.19 Million offer an appealing suburban option for families. Nearby Al Hamra Island is coming up as a mixed-use destination. Projects like Ellington Views 2 will benefit from the island’s development.
Other localities gaining prominence as seen on Bayut include Wadi Ammar, Al Marjan Island, and Al Howaelat offering quality living environments at competitive rates relative to other emirates.
Targeting ready units in areas like Hayat Island with amenities rolls or upcoming projects at Al Hamra Island below AED 1 Million ensures strong rental yields of 6-8% annually besides 10% capital appreciation over 5-7 years given RAK’s economic growth plans. Its ongoing infrastructure projects are improving connectivity and investment climate. Careful analyses of locations factoring accessibility, visa terms, and appreciation potential make RAK real estate investments favorable.
NEOM
NEOM city is a planned mega-development in northwest Saudi Arabia along the Red Sea and Gulf of Aqaba coastlines. It is envisioned as a center of innovation to diversify Saudi Arabia’s economy and reduce its reliance on oil.
NEOM consists of 10 distinct regions destined to be sustainable models of urban development. The regions include
- The Line – A 170 km long linear city contained within two mirror-clad skyscrapers and designed by Morphosis to house 9 million people.
- Octagon – A floating octagonal port city near the town of Duba designed by Bjarke Ingels Group to connect with ships in the Suez Canal.
- Trojana – A mountain resort 50 km from the Gulf of Aqaba designed by LAVA to be the site of the 2029 Asian Winter Games with ski slopes, hotels, and attractions.
- Sindalah – An island luxury resort under construction on the Red Sea designed by Luca Dini to open this year with hotels, villas, and golf courses.
- Leyja is a mountain valley tourist destination with hotels clinging to the cliffs designed by various architectural firms, including Zaha Hadid Architects.
- Epicon – Two jagged linked skyscrapers in the Gulf of Aqaba designed by 10Design contain hotels, residences, and a beach resort. Siranna – A hexagonal hotel pillow-shaped to blend into the Gulf of Aqaba mountains designed by Woods Bagot, accessible only by sea.
- Utamo – An immersive theater in the Gulf of Aqaba mountains designed by Ricardo Bofill as the “theater of the future.”
- Norlana – A Gulf of Aqaba coastal yachting town and marina community designed by 10 Design with hotels, apartments, and sports facilities.
- Aquellum – An “upside down” sea-facing skyscraper housing hotels, shops, and apartments wrapped around an “underwater open square” in the Gulf of Aqaba designed by LAVA and Name Architecture.
- Zardun – A 4sqkm eco-resort in NEOM overlooking the Gulf of Aqaba featuring 3 boutique hotels, trekking, and wildlife conservation designed for ultra-luxury sustainable tourism.
Conclusion
In short, UAE’s key investment hubs of Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, and NEOM, backed by strong economic fundamentals, infrastructure growth, and emerging project types, continue to attract local and foreign capital. Conducting thorough due diligence across locations, target projects’ execution track records, and demand-supply dynamics is advised before finalizing investments to benefit from the opportunities this vibrant market presents. Post-pandemic economic recovery has further accelerated UAE’s position as a premier global investment choice for real estate.
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