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Properties with Best Rental Yield in Dubai – How To Find Them (Part 2) (Updated 2024)

Highest Rental Yield in Dubai and Dubai Rental Yield

In Part 1, we went through 6 factors that will impact your rental yield. Now in Part 2, we will show you step-by-step on how to search for properties only with the highest rental yield in Dubai.

Let’s be honest, you probably will not find that perfect rental property that checks all on your list, but at least now you will have the tools to do your own due diligence.

Steps to Find Highest Rental Yield in Dubai

Step 1: Make a Community Evaluation

As mentioned in Part 1 post, here are the top 10 best areas to buy properties in Dubai (as of December 2023).

AreaSold propertiesAverage price (AED)
Jumeirah Village Circle14,345AED 777K
Business Bay10,239AED 1.4M
Dubai Marina9,852AED 3M
Dubai Hills5,279AED 2M
Jumeirah Lakes Towers5,119AED 1.2M
Dubai Creek Harbour4,727AED 2.2M
Arjan4,626AED 720K
Sobha Heartland3,889AED 1.7M
Meydan One3,472AED 629.8K
Dubai South2,993AED 2M
Source: fämproperties.com As of January 2024

To get an idea of the rental yield in the top 10 communities, we have extracted the average rental gross yield for a “1 Bedroom Apartment” from Property Finder. Keep in mind this is a ‘gross yield’ which means, community service charges and all other associated costs have not been factored in.

Average Gross Yield in Top 10 Best Communities to Buy Properties in Dubai

RankCommunityAverage Sale Price
(1 Bedroom)
Average Rental Average Rental Gross*
1.Jumeirah Village CircleAED 899,973AED 75,0008.30%
2.Business BayAED 1,100,000AED 102,0006.20%
3.Dubai MarinaAED 1,200,000AED 114,0006.90%
4.Dubai HillsAED 1,550,000AED 120,0007.70%
5.Jumeirah Lakes TowersAED 940,000AED 89,9996.40%
6.Dubai Creek HarbourAED 1,475,000AED 110,0006.70%
7.ArjanAED 742,132AED 70,0007.00%
8.Sobha HartlandAED 1,200,000AED 95,0006.40%
9.Meydan OneAED 840,000AED 75,0007.10%
10.Dubai SouthAED 542,406AED 55,0006.50%
Last 3 months (As of January 2024)

*Property Finder: Rental gross yield = Average annual rental price / Average sale ‘asking’ price.

Step 2: Search & Compare Similar Rental Properties

As an investor, plan on investing in an area you are familiar with or near you. It will help you become an expert in your chosen area, and compare deals nearby, easier.

Once you have narrowed down an area (or two) you are comfortable with, start looking for properties on property websites that fit your list of criteria. But first, you need to be very clear on your criteria. This will prevent you from deviating and help maximize your potential rental yield.

Stick to your criteria on how much ‘home’ you can afford.

Here are some criteria that should be clearly defined:

1. Maximum purchase price

2. Maximum mortgage payment

3. Cash-flow requirement

4. Cash on cash return

5. Maximum furnishing cost

Once you have narrowed down some potential properties in an area, you can review and compare the property building details (i.e. sale price, rental yield, rental history) at DXB Interact.

Best Rental Yield Properties Dubai
Best Rental Yield Properties Dubai

Step 3: Use Dubai Rental Yield Calculator for ROI

Clearly, a strong return on investment (ROI) is the ultimate goal when investing in any property.

We have put together a simple Rental Yield Calculator called “Rental Yield Calculator Dubai” using Excel/Google Sheets. This calculator includes all the upfront and extra costs that come with buying a property in Dubai and the potential return on investment (ROI) of a given property.

In short, assuming all other factors are equal, a property with a greater cash flow is the better investment.

Conclusion

When considering areas with the best rental yield, it’s not just about dividing rental income by property purchase price. There is a lot more to it than only factoring in those two numbers, so make sure you take the time to research, dig in the facts, understand what you are getting into, and then build your plan around it.

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