Yield Drivers

Dubai remains one of the world's highest-yielding markets. Yields are driven by purchase price, service charges, and occupancy. Prime locations offer capital appreciation, while affordable areas offer higher immediate rental returns.

Average Yields by Area

• Jumeirah Village Circle (JVC): 8% to 9% – Top choice for mid-market investors.
• Dubai Marina & Downtown: 5.5% to 7% – Lower yields but higher capital preservation and liquidity.
• International City & Discovery Gardens: Can exceed 9-10%, though with lower capital appreciation potential.

Short-Term vs Long-Term

Short-term (holiday) rentals in tourist hubs like JBR and Downtown can generate 20-30% higher revenue than long-term leases, but require active management and obtaining DTCM permits. Long-term leases offer stability and consistency.

Off-Plan Rental ROI

Investors purchasing off-plan can often secure 7-10% yields post-handover due to appreciation during the construction phase lowering their effective entry basis.

Conclusion

Investors should balance their portfolio between high-yield cash flow properties and high-appreciation prime assets.