Best ROI (Return-On-Investment) on Villas

By
Mortgage and Lending with Olympus Labs

Dubai is set out in a very straightforward way and is divided into 9 sectors which are, in turn, divided into 226 communities. Analysis by https://emirates.estate/ shows that ROI on villas is slightly different from community to community, meaning that you might like to choose a specific community to invest in to maximize your profits.

The size of Dubai's communities starts at 0.17km2 and sometimes exceeds 60km2. The population spread is from 1.135 to 90.870 inhabitants resulting in a population density ranging from 44/km2 to 76.923/km2.

Property prices in UAE need to be carefully considered by the investor. The Dubai real estate market has always been a very attractive option for overseas investors, but making the final decision to purchase can take a while.

Villas are not available in every Dubai community and some data is missed in this report. However, the elementary estimations show an average annual return in the following communities:

  • Green Community – 5.61% ROI
  • Reem – 5.50% ROI
  • Mudon – 5.41% ROI
  • The Lakes – 5.36% ROI
  • Meydan City – 5.32% ROI

While the standard set of amenities in the communities can vary considerably and include restaurants, swimming pools, supermarket chains, outlets, in turn the rental returns vary considerably too.

  • Green Community heads the lists of communities with villas under AED 3.5M. This will be a medium-sized villa of 4 bedrooms.
  • Investments on villas at Reem start at a moderate AED 1.8M for a 4 bedroom unit.
  • Mudon 3 bedroom villa is AED 1.8M standing in the same price category with those of Reem.
  • The average price in The Lakes revolves around AED 3.1M.
  • Meydan City villas are about the same at around AED 3.4M.

What stays apart?

Green Community boasts easy access to E11, namely Sheikh Zayed Road, and E311, namely Sheikh Mohammed Bin Zayed Road.

Reem offers go-karting tracks, sand surfing, camel riding tracks and camping at the Botanical Park.

Residents of Mudon enjoy an expansive 167K km2 park.

The Lakes hosts reputable educational institutes with tennis courts and basketball playgrounds in the campus.

Meydon City is right next to the high-caliber sport events such as the Dubai World Cup.

Nota Bene

As with most places around the world, the historical rental prices in the communities affect the sale price. This is another factor to consider when trying to calculate your projected ROI from buying a villa in Dubai.

Many, but not all, villas have a swimming pool and this can increase the rental returns, as due to Dubai’s warm climate, many people expect a swimming pool on their property. Some areas are still to be completed, which means there’s considerable possibility of growth of the area, and an increase in rental potential.

Dubai is said to be the place where the past meets the future. The same can be said about the architectural styles of the villas. They may bear the traditional Arabian architecture fused together with modern fixtures to ensure a comfortable lifestyle.

Comments (1)

Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and make it a wonderful  day!

Oct 26, 2021 07:23 AM