Popular areas of Dubai for buying investment property

Do you want to know where is the best place to rent a house in Dubai, or rent out your property? We tell you about the best areas of Dubai for such investments. 

How is the Dubai rental market developing?

Dubai, the capital of the UAE emirate of the same name, is the most populous among the seven emirates of the country. At the time of publication of the article, the population of Dubai is 3.65 million people. At the same time, the vast majority (about 85%) are foreigners. Over the past year, the number of residents there has increased by 100 thousand people. 

Along with the population, the demand for real estate in the Emirate is also growing. For comparison, if in October 2022 a total of 53,756 lease agreements were concluded in Dubai, then in October 2023 – 60,963 lease agreements (of which 56.50% were new, and 43.50% were extended).

The total monthly index as of October 2022

According to experts, the Dubai rental market in October 2023 showed an increase in the number of contracts by 13.41% compared to the previous year, due to a significant increase in the number of extensions by 21.97% and a noticeable increase in annual contracts.

Over the past 10 years, there has been a trend: on average, about 80% of rented properties are apartments, and the remaining 20% are villas and townhouses.

The total monthly index as of October 2023

It should be noted that the government strictly controls the legislation in the field of apartment rentals in Dubai. Thus, the Dubai Land Department, through its RERA division (Real Estate Regulatory Authority), has established mandatory registration of all long-term lease agreements (from 1 year) in the unified EJARI electronic system.

This system has a number of advantages: it allows you to control and restrain unjustified rent increases, protects the rights of tenants from illegal eviction. Due to registration with EJARI, it is impossible to rent the same property twice for the same period.

Up—to-date reports on real estate rentals and purchases, as well as on the best areas of Dubai for investment, are regularly published by the Emirate’s Land Department – you can follow them here. 

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Where is the best place to rent a house in Dubai

The city is divided into 9 regions, which in turn are divided into districts — there are There are more than 200 in the Emirate. 

So, here are the top 10 most popular areas for rental housing in Dubai at the moment according to Dubai Land Department statistics:

Now some interesting and important information about each of the locations of this rating of Dubai districts.

Al Murar (Al Mararr)

Al Murar district is located in Deira District, close to Dubai International Airport and the new Al Maktoum International Airport. Both locals and expats live in the area. 

Both residential and commercial properties can be rented in Al Murar. Office space can be rented from 40,000 dirhams (~$10,900) per year for 300 square meters. 

Since the area is overpopulated, only a few apartments are offered for rent here. The cost of renting a studio in Al Murar varies from 20,000 to 36,000 dirhams (~$5,450-$9,800) per year.

Jabal Ali First

Jabal Ali First is located next to Dubai Marina. It has a well-developed infrastructure and convenient location, which makes it easy to reach the main attractions and social infrastructure of Dubai (restaurants, shopping malls, supermarkets and medical facilities).

There are more than 7,000 companies in the area engaged in trade, logistics, manufacturing, as well as in various industries and services. Jabal Ali First is also a major commercial port.

Qualified professionals and families usually prefer to live in the area. There are many types of properties on the local real estate market — from apartments to villas and penthouses. Villa rental prices start from 135,000 (~$36,750) dirhams per year, and office space can be rented from 45,000 dirhams (~$12,250) per year. 

Business Bay

The Business Bay area is one of the financial centers of the Middle East. It is located between Downtown and Jumeirah, on the shores of Dubai Bay. A large number of office buildings are concentrated here, but there are also residential complexes.

The area is attractive for young professionals and entrepreneurs. About 18 thousand companies are registered here. At the same time, there are practically no parks and playgrounds. The prestigious GEMS and Safa British Schools are located next to Business Bay.

Apartment rental prices depend on the size and level of luxury of the property. For example, studios can be rented on average for 72,000 dirhams (~$19,600) per year, one—bedroom apartments — 97,000 dirhams (~$26,400), two—bedroom apartments – 149,000 dirhams (~$40,500), three-bedroom apartments – 228,000 dirhams (~$62 100) per year. A three-bedroom, two-bathroom villa can be rented for an average of 220,000 dirhams (~$60,000) per year. 

Al Warsan First

Al Warsan First is a modern neighborhood that is ideal for families with children. There is a fairly developed infrastructure here, which includes, among others, schools, kindergartens and medical institutions. In addition, Al Warsan is a free economic zone where foreigners can buy property.

The cost of renting office space in Al Warsan starts from 65,000 (~$17,700) dirhams per year. One—bedroom apartments can be rented from about 360,000 dirhams (~$98,000) per year, and three-bedroom villas from 1,500,000 dirhams (~$409,000).

Al Barsha South Force (Al Barsha South Fourth)

Al Barsha South Force district is part of Al Barshi, a prestigious and developed district of Dubai. It is located in a convenient location, which makes it easy to get to key points of the city.

There are mainly 2-3-room townhouses and villas suitable for small families. There are many schools, supermarkets and other important infrastructure facilities in the neighborhood.

The cost of renting apartments in Al Barsha South Force starts from 40 000 dirhams (~$11 000) per year for a one-bedroom apartment and up to 82 000 (~$22 300) dirhams for a three—bedroom apartment.

Al Mutinna (Al Muteena)

Al Mutinna is a quiet residential area in the eastern part of Deira. There are various housing options — from apartments to villas. The annual rent for a one—bedroom apartment starts from 25,000 dirhams (~$6800), and for a three-bedroom apartment – from 60,000 dirhams (~$16,300).

There are several schools near Al Mutinna, including Little Flower English School and Pearl Wisdom School Dubai. Important attractions in the area are the Sheraton Deira and Marco Polo Hotel.

Dubai Marina (Marsa Dubai)

Dubai Marina is a fashionable residential area with developed infrastructure and stunning views of skyscrapers and an artificial bay. There are many residential, commercial and retail facilities here.

Among the disadvantages are the high noise level, traffic jams during rush hours and the high cost of housing — the average cost per square meter is about 14,700 US dollars. As for rent, the prices for renting one—bedroom apartments in Marsa Plaza, Dubai Festival City, start from 100,000 dirhams (~$27,200); with three bedrooms – about 190,000 dirhams (~$52,000) per year.

Hor Al Anz (Hor Al Anz)

Khor Al Anz is an area in the eastern part of Dubai that offers a variety of housing options at affordable prices. This neighborhood is popular due to low-rise residential buildings and a wide selection of apartments.

The annual rent for office space in Khor Al Anz ranges from 18,000 to 80,000 dirhams (~$5,000—$22,000) depending on the area. Apartment prices also vary: for example, studios can be rented from 22,000 dirhams (~$6,000) per year.

Nadd Hessa

Nadd Hessa is a quiet suburb of Dubai, which is suitable for those who are looking for harmony and the same lifestyle. There is a variety of housing here — there are apartments and villas. The area is inhabited by both locals and expats.

According to the Dubai Statistical Center, more than 1.2 million people live in the 3rd sector, which includes Nadd Hessa. This is 36% of the total population of Dubai.

An annual rental of a spacious one-bedroom apartment will cost about 38,000 dirhams (~$10,400). 

Abu Hail

Abu Khail boasts modern infrastructure, including the Abu Khail Shopping Center. There is a metro station on the Dubai Metro Green Line serving the area and nearby Khor Al Anz. 

It is quite cheap to live in this area by Dubai standards — annual studio rent starts from 25,000 dirhams (~$6,800). Shopping malls, restaurants, cafes, sports facilities and attractions are located in the vicinity of Abu Hail. 

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What will happen to the rental prices in Dubai?

Experts predict that there will be no significant reduction in rental rates in Dubai in the near future. However, the situation may be affected by the innovation of the Department of Land Resources (DLD).

To regulate rental prices, DLD decided to replace the current rental index with a rating system for residential buildings. Previously, the index was determined mainly by location, but now it will be calculated based on residents’ feedback on the level of comfort and convenience of living. 

Residents will rate various aspects from 1 to 4 stars: proximity of infrastructure, transport accessibility, quality of finishing, work of the management company, etc.

Owners of highly rated buildings will be free to raise rents. And to raise rates in low-rated houses, you will need permission from the authorities.

According to experts, the new system is unlikely to stop price increases, but it may slow down the pace of apartment rate increases. At the same time, the rating will not be introduced for villa rentals yet.

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Frequently Asked Questions 

Which areas of Dubai are on the list of the best for buying real estate?

According to statistics from the Land Department, the most popular areas to buy an apartment in Dubai in October 2023 were: Al Murar, Jabal Ali First, Business Bay, Al Warsan, Dubai Marina and others. These areas are attractive for their infrastructure, convenient location and good transport links.

Which area of Dubai is considered the most prestigious for living at the moment?

Dubai Marina is considered to be one of the most fashionable and sought-after areas of Dubai. This modern residential area is famous for its developed infrastructure, stunning views of skyscrapers and an artificial bay.

Why do investments in Dubai real estate remain profitable even in conditions of economic instability?

Despite the global financial turmoil, Dubai’s real estate market continues to attract investors due to government regulation and legal protection of buyers, stable economic growth in the region, as well as high demand for residential and commercial real estate.

Author

Yuliya Yanukovich Editor-in-Chief

I am responsible for the work of the editorial office. I write expert interviews and guides.

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