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In terms of return on investment, real estate in Dubai has long been one of the most lucrative in the world. Experts are confident that the local market will continue to develop and even reach record levels by the end of the year.
But where exactly should you invest your money? Which are the best choices when it comes to neighbourhoods? We have studied the opinions of numerous real estate experts and compiled a list of districts that are recognised as profitable by all the specialists. We have also gathered information on the average property prices and the promising off-plan projects in each.
Content:
- Downtown Dubai: Strong Demand
- Business Bay: The Fastest Growing
- Dubai Marina: Expensive Waterfront Housing
- Palm Jumeirah: Elite Island
- Jumeirah Lake Towers: Affordable Housing in Skyscrapers
Downtown Dubai: Strong Demand
Dubai's business centre is one of the most popular locations for relocation and investment. When wealthy foreigners come to the metropolis, they often choose to live here. In addition to all the necessary amenities, the local infrastructure offers several unique attractions: the world's tallest skyscraper, the Burj Khalifa, the Dubai Opera and the massive Dubai Mall.
As a result, Downtown Dubai is one of the most prestigious neighbourhoods, with a wide selection of expensive properties. It has some of the highest residential prices and impressive rental yields in the UAE.
| Type of property | Minimum floor area | Starting price, AED |
|---|---|---|
| Apartments | 42 m² | 675,000 (USD 183,000) |
| Penthouses | 180 m² | 4,000,000 (USD 1,090,000) |
| Villas | 240 m² | 5,000,000 (USD 1,360,000) |
By June 2023, Downtown Dubai will have several thousand apartments, about a hundred penthouses and very few villas. This is a characteristic of the area - the demand for luxury real estate here always exceeds the supply. However, those who manage to buy a detached house will definitely be able to sell it at a higher price in the future. Having a view of one of the local attractions from your window will significantly increase the rental value if you plan to rent out the property.
Among the notable projects, The Oasis stands out, an expensive residential complex of coastal villas and mansions. You can choose from 4- or 5-bedroom house layouts starting at AED 8 million (USD 2.18 million). The community will cover approximately 1.5 million square metres and will boast lush greenery, water canals and jogging and walking tracks.
Business Bay: The Fastest Growing
Almost everything that can be said about Downtown Dubai also applies to Business Bay. It’s also a popular area among the affluent population with a well-developed infrastructure. What are the differences between them?
Experts agree that Business Bay will be the fastest developing area in Dubai based on the 2022 results. It may maintain its leadership in 2023 as well. This is because it’s home to some of the most prominent and expensive developments.
Many large companies have their headquarters in Business Bay. As a result, there’s a high demand for rentals here: expatriate workers want to live close to their offices.
| Type of property | Minimum floor area | Starting price, AED |
|---|---|---|
| Apartments | 30 m² | 520,000 (USD 142,000) |
| Penthouses | 149 m² | 3,900,000 (USD 1,060,000) |
| Villas | 180 m² | 2,000,000 (USD 540,000) |
Business Bay offers a far more diverse range of properties than Downtown Dubai. On the secondary market, you can find small affordable apartments as well as the most expensive penthouses in the Emirate.
At present, the most notable project is the branded skyscraper Bugatti Residences, also known as Sky Mansions. Here you’ll find the most expensive property in the UAE today: a penthouse worth AED 750 million (USD 204 million). The project is expected to be completed by the fourth quarter of 2025.
Other notable projects include:
- Burj Binghatti Jacob & Co Residences - an elite residential complex, the world's tallest residential skyscraper (104 floors), expected to be completed by Q2 2026;
- Al Habtoor Tower - a skyscraper (the first of three) in the new Al Habtoor City residential development, scheduled for completion by Q3 2026.
Dubai Marina: Expensive Waterfront Housing
The district is located on the banks of an artificial canal with a 3.5-kilometre-long promenade. Another feature of the Dubai Marina is its variety of restaurants, bars and various entertainment venues, including yacht clubs. In addition, the community's location provides quick access to any part of the city.
Despite the high demand, there are few new developments in the area, resulting in rising property prices and ever-increasing rental costs. With the new trend for coastal homes and apartments, the demand in the Dubai Marina will continue to grow for a long time to come.
| Type of property | Minimum floor area | Starting price, AED |
|---|---|---|
| Apartments | 30 m² | 540,000 (USD 147,000) |
| Penthouses | 95 m² | 3,350,000 (USD 910,000) |
| Villas | 232 m² | 3,400,000 (USD 930,000) |
Among the notable projects, at least three luxury residential complexes can be distinguished. First and foremost is Cavalli Tower - a branded residential complex by the Italian brand Roberto Cavalli. The unit prices start at AED 1.7 million (USD 460,000) and construction is expected to be completed by the fourth quarter of 2025.
The other two major residential developments are:
- LIV LUX - a project with prices starting at AED 1.8 million (USD 504,000) and expected to be ready by the fourth Q4 of 2026.
- Marina Shores - a project with unit prices starting at AED 1.5 million (USD 410,000), also scheduled for completion by Q4 2026.
Palm Jumeirah: Elite Island
Palm Jumeirah is one of the most unique places in Dubai. It's an artificial island in the shape of a palm tree (hence the name) and has long been one of the most popular locations among wealthy expatriates.
The luxury real estate sector in Palm Jumeirah is the most active. The aforementioned trend towards waterfront homes has increased the demand and stimulated a supply - there’s nowhere else in Dubai with such a large number of coastal mansions and villas. All of this is complemented by a well-developed infrastructure with an abundance of shops, services and entertainment.
| Type of property | Minimum floor area | Starting price, AED |
|---|---|---|
| Apartments | 29 m² | 950,000 (USD 259,000) |
| Penthouses | 155 m² | 6,000,000 (USD 1,630,000) |
| Villas | 169 m² | 7,600,000 (USD 2,070,000) |
Como Residences, scheduled for completion in Q3 2027, is among the most notable off-plan projects. The 71-storey skyscraper will offer apartments with 2- to 7- bedrooms. The sizes will also vary, from 415 square metres to an incredible 2039 square metres. The developer also promises unique internal infrastructure, such as an exclusive beach for residents only.
Jumeirah Lake Towers: Affordable Housing in Skyscrapers
The name of the district gives away its layout: it consists of several high-rise buildings on the shores of artificial lakes. Despite its proximity to Downtown Dubai and the Dubai Marina, the prices in Jumeirah Lake Towers may surprise you: you will find not only expensive apartments but also very affordable options. The wide range of prices made JLT popular, which led to a 27% increase in rent by 2022.
It's worth noting the convenient transport links: there are two subway stations nearby. In addition, many popular attractions are within walking distance.
| Type of property | Minimum floor area | Starting price, AED |
|---|---|---|
| Apartments | 30 m² | 400,000 (USD 109,000) |
| Penthouses | 160 m² | 2,250,000 (USD 610,000) |
Sobha Verde, expected to be completed in Q1 2026, stands out from the other off-plan projects. This skyscraper will have 58 floors and a wide range of one-, two- and three-bedroom apartments.
Real estate in any of these areas can be a profitable investment - prices here will definitely continue to rise and the high rental demand will ensure good returns on the properties. Most experts recommend paying attention to the off-plan projects in Dubai, which can offer maximum profit.
