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Dubai real estate recorded a jump in investment returns in apartments and villas during the first quarter of 2023, by 12.5%, compared to the same period in 2022; This is supported by the strong rise in rents at the level of various regions.
The “Jumeirah Lakes Towers” and “Dubai Silicon Oasis” regions achieved the highest rate of increase, from 8% to 9%, while the least increase was in “Palm Jumeirah” and “Damac Hills” by 3.5%.
The “Global Village” area topped in terms of the highest annual investment returns for apartments, by 10%, followed by “Jumeirah Lakes Towers” and “Dubai Silicon Oasis” by 9%, then “The Kindergarten” by 8%, and “Dubai Marina” by 7.2. %, then «Business Bay» 6.6%.
Investment returns on residential villas in Dubai
Region First Quarter 2023 First Quarter 2022 Change %
Jumeirah Village Circle 7.50% 7% 7%
Cities 6.80% 6.30% 8%
Dubai Hills Estate 6.60% 6.20% 6.50%
Dubailand 6.40% 6% 6.60%
Springs 6.10% 5.80% 6.10%
Arabian Ranches 6% 5.60% 7%
Damac Hills 5.80% 5.60% 3.50%
The Villa 5.70% 5.30% 7.50%
Plains 5.50% 5.30% 3.70%
In the residential villas market, “Jumeirah Village Circle” ranked first with a rate of 7.5%, then “Cities” came second with 6.8%, followed by “Dubai Hills Estate” with 6.6%, and “Dubai Land” with a rate of 6.4%, then the “Springs” area with an annual return of 6.1%. .
The indicators of platforms and institutions specialized in monitoring the real estate sector, surveyed by the “Gulf”, confirmed the attractiveness of the Dubai market and the maintenance of high levels in terms of investment return. The prevailing average rental return in Dubai ranges between 4 and 10%, depending on the geographical distribution.
Dubai has outperformed many of the major real estate markets around the world in terms of real estate investment returns, amid strong expectations that the emirate will maintain sustainable demand by supporting renewable factors that feed the development of the market.
International reports confirm that Dubai still offers the best value for real estate investors, compared to major global cities, in addition to the emirate providing a safe investment environment amid record growth in terms of sales and unprecedented real estate activity.
Among the most important factors that make the real estate market in Dubai attractive to global investors is the higher annual rental returns, which ranged between 5% and 10%, which are much higher than the annual rental returns in New York, which are approximately 3%, London 2.7, Singapore 2.5%, and Hong Kong 2.4%, according to the latest studies in this regard.
Annual investment returns on residential apartments
Region First Quarter 2022 First Quarter 2023 Change %
Jumeirah Lakes Towers 8% 10% 13%
Dubai Silicon Oasis 8% 9% 12.50%
International City 9% 9% 11%
Al-Rawdah 7.70% 8% 4%
Dubai Marina 6.90% 7.20% 4.30%
Mohammed Bin Rashid City 5.80% 6.60% 5.20%
Downtown Dubai 6.20% 6.50% 4.80%
Business Bay 6.30% 6.10% 4.80%
Palm Jumeirah 5.70% 5.90% 3.50%
It must be noted the importance of zero real estate tax; Dubai does not impose any tax on the purchase of residential real estate, which is a preferred option for real estate investment around the world, especially since the real estate tax burden is higher in other countries such as Britain at 2.5%, France at 1.7% and Greece at 1.5%, according to the International Tax Competitiveness Index.
