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COMPARING CHANGES IN SALE PRICES AND RENTAL YIELDS IN DUBAI’S MOST IN-DEMAND COMMUNITIES




Within the first six months of 2019, sale prices have continued to decrease in Dubai, leading to a consequential increase in rental yields with The Palm Jumeirah, Al Barsha, and Downtown Dubai being exceptions.

The average sales prices per sqft have been studied in the 10 most in-demand Dubai communities, comparing changes in gross rental yields between January – June 2019 with the corresponding period in 2018.

Purchasing an apartment in Dubai’s most coveted communities
Despite the high price per sqft in Downtown Dubai, Palm Jumeirah and Dubai Marina in 2019, these areas are highly sought after by many apartment buyers. These communities have many off plan properties in Dubai to invest in. The rental yields in Dubai Marina, the most in-demand community, saw a modest increase, jumping to 6.2 percent in 2019 from 6.0 percent in 2018.

Rental Yields
As of January – June 2019, the communities with the greatest potential for high gross rental yields include Jumeirah Village Circle, having a rental yield of 8.2%, Dubai Sports City - 8.4%, Al Barsha - 8.7% rental yield and Dubai Silicon Oasis with 9.5% rental yield.

Al Barsha has the highest increase in rental yields, moving from 8.1% in 2018 to 8.7% in 2019.

Dubai Sports City, with an 8% rental yield in 2018 grew to 8.4% in 2019. The decrease per sqft is among one of the highest recorded.

Rental yields in Jumeirah Village Circle also increased to 8.1% in 2019 from 7.8% in 2018. JBR’s rental yield also had an upward shift, going from 5.8% in 2018 to 6.3% in 2019.

Contrary to the upward trend, Palm Jumeirah recorded the most significant decrease in its rental shift, decreasing to 4.2% in 2019 from 5.1% in 2018.

Most Affordable Communities
In 2019, Jumeirah Village Circle, JLT, Dubai Sports City and Al Barsha recorded the lowest average sales price. In Al Barsha, an apartment costs AED 1,087 per sqft, while an apartment goes for AED 1,028 per sqft in JLT; Jumeirah village - AED 832 per sqft, while Dubai Sports City, ranking the lowest, costs AED 775 per sqft. These communities have many Villas for sale in Dubai.

TOWN SQUARE HAS THE HIGHEST VILLA RENTAL YIELDS
Town square levels as one of the most affordable on the list, with an average sale price of AED 676 per sqft. Growing from 7.4 percent in 2018 to 7.8% in 2019, this community remains a good option for investors seeking buy-to-let properties.

Rental yields in Dubai Silicon Oasis grew from 5.3% in rental yields in 2018 to 5.5% in 2019 while rental yields in Jumeirah Village Circle grew from 5.9% in 2018 to 6.2% in 2019.

Al Barsha, one of the communities with a drop, has its 2019 rental yields at 5.4% from 6.1% in 2018.

The only community without changes from January – June 2018 to the same period in 2019 is Emirates Hills, keeping at 2.6% and standing as the most expensive community in Dubai, with an average sales price of AED 2,330 per sqft.

Most Affordable Communities For End-Usere
For end-users, the most affordable communities include JVC with an average sales price of AED 613 per sqft, next to Town Square - AED 676 and Dubai Silicon Oasis - AED 735. These are followed by Arabian Ranches, Al Barsha and the Meadows with sales prices averaging AED 1,050 per sqft.


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