SmartCrowd, UAE’s first regulated digital real estate investment platform, has highlighted six areas to invest in Dubai in 2023. These areas stand out as particularly promising for investment purposes based on their strategic locations as well as high rental yields, capital appreciation and overall appeal, the company said recently.
SmartCrowd is an app that allows users to invest in Dubai properties for as little as AED500, and recently disclosed its plans to head to Pakistan.
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The six key areas it highlighted are listed below:
1. Business Bay
Located just south of Downtown Dubai with a prominent canal-side location, Business Bay has been the most transacted area in 2022, according to Reidin, a real estate information company focusing on emerging markets.
“One of the fastest-developing areas of Dubai, with demand for its limited properties rising accordingly with new supply set to release in 2023,” said SmartCrowd.
Business Bay is also known as Dubai’s skyscraper district, boasting unparalleled views of the Burj Khalifa, Downtown Dubai, and the Canal and offers high-end amenities and a fast-paced premium lifestyle in a central location.
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The area has also become a sought-after short-term rental destination as well as a major business destination, considering its close proximity to the upscale Downtown district. Both property prices and rental rates have risen 15% and 34%, respectively, over the past year, making it a top location to buy property in Dubai.
2. Downtown Dubai
Downtown is considered the heart of the city, and has consistently commanded high demand from high-net-worth individuals and foreign buyers. Defined by landmarks such as the Burj Khalifa, Dubai Mall, and the Dubai Fountain – this prime location is a firm favourite for both long-term and short-term rentals in Dubai.
It consists of luxury high-rise towers and upscale nightlife. All this has made it among the most transacted areas in Dubai, backed by its strong rental market and increasing apartment sale and rental prices (14% and 41% Y-o-Y, respectively).
As more and more high-net-worth individuals look to settle in Downtown, a surge in demand will continue to outstrip supply while studios that are limited in supply, will be priced at a premium.
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Additionally, a property with a view of the Burj promises higher returns on platforms like Airbnb. Although Downtown is a pricier area, especially around Sheikh Mohammed Bin Rashid Boulevard and Armani Hotel, huge demand and high rental yields make this a great investment.
3. Palm Jumeirah
This palm tree-shaped man-made island is increasingly becoming one of the most popular prime areas to invest in Dubai properties. It comprises of a mix of beachside apartments, bespoke villas, restaurants, entertainment venues, resorts and retail hubs like Nakheel Mall and The Pointe.
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Palm Jumeirah has been one of the best-performing areas for luxury real estate, as tourists and high-net-worth individuals from all over the world gravitate toward its incomparable retreat-like privacy and world-class quality. Growing demand for luxury villas, in particular, alongside its high occupancy rates touching 88%, and soaring sale and rental prices for villas (45% and 40% over 1 year, respectively) make it a promising investment in Dubai.
Many billionnaires have invested in luxury villas on the Palm, designating a section as ‘billionnaire’s row’. Indian entrepreneur Mukesh Ambani was recently in the news for his record-breaking purchase.
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4. Dubai Marina
Situated right between Jumeirah Lake Towers (JLT) and Jumeirah Beach Residence (JBR), this sought-after area is brimming with dining, leisure, and retail spots where residents and tourists can enjoy close proximity to major attractions, including the nearby Walk at JBR, Bluewaters Island and the Dubai Harbor.
Dubai Marina has also been among the most transacted area for the year in ready-sale apartments, especially in the luxury segment and is said to be one of the best areas to invest in Dubai premium holiday homes – it has a 87.04% occupancy rate. Dubai Marina’s limited upcoming supply and increasing rental prices, 29% Y-o-Y, make it a favourable choice for those looking to make a valuable investment in Dubai and capitalise on the strong rental market.
5. Jumeirah Lake Towers (JLT)
Built around four artificial lakes, JLT is a business hub that neighbours Dubai Marina, with a blend of residential and commercial towers that cater to all budgets and property needs. Thanks to its proximity to Dubai Marina, Downtown Dubai, and other major commercial hubs, JLT has witnessed an influx of buyers seeking more affordable mid-range properties in Dubai, resulting in a high occupancy rate.
Rental rates have risen 27% over the past year. Additionally, JLT is situated between two metro stations, Jumeirah Lake Towers and Damac Properties with access to 600 retail outlets, over 300 restaurants, and cafes, 5 hotels, child-care facilities, outdoor activities, educational institutions and much more.
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6. The Greens and Views
Developed by Emaar, The Greens and Views are known for high-quality construction and excellent amenities. Located near the Dubai Knowledge Park, Internet City, and Media City, the picturesque areas are nestled between the greenery of Emirates Golf Club and Barsha Heights, with a lake separating The Greens and Views.
This peaceful, urban setting is recommended as a great area to reside and invest in a long-term rental, as it features a suburban setting complete with waterways, shopping centers, international schools, golf courses and five-star hotels. The Greens are a more affordable area compared to its neighboring high-end development, The Views. With sales and rental prices increasing 9% and 18%, respectively, over the past year, stated the company.