Which Dubai Districts Will Go Up in Price? We Asked the Expert

Dubai is well-known for its investment appeal. In general, however, people tend to highlight the same districts for investment known to everyone and sought by everyone. At the same time, there are many places in the city which are not that familiar to the public at large and which could enable a property investor to achieve a comparable or even better return on their investments.

Housearch asked UAE real estate expert Andrey Neginsky, who has his own blog, to discuss lesser-known Dubai districts which deserve the attention of investors.

Andrey Neginsky
Andrey Neginsky, UAE real estate expert

Dubai is a young, diverse and rapidly changing city. Consequently, when you choose a flat, you should take a good look at the location and prospects of the respective district. This will determine the profitability of your investment derived from either letting or reselling the property.

I will tell you here about five Dubai districts which will deliver a significant return if you select a property professionally. At the same time, I will also explain why I personally find each district attractive.

Dubai Islands

This is an archipelago made up of five islands. A new residential district will appear here by 2026, complete with its own shopping centre, 20-kilometre coastline, several yacht marinas, five-star hotels, school and a major art centre.

The area is being developed by Nakheel, one of the largest property developers in the United Arab Emirates. It has prepared a master plan for each of the five islands and sold all the land plots on them. Construction is scheduled for completion at the end of 2025. 

Haven was the first residential project on Dubai Islands to be offered for sale. It gives you an idea of the profitability of investments. Flat prices in the complex start at USD 438,000. The anticipated rate of return from letting is 7% per annum, while prices are forecast to rise by 35% by the time of the commissioning of the complex. 

Mina Rashid 

This is a worthy competitor of Dubai Marina where the price per square metre is twice as high. At the same time, you are only a ten minute drive from Burj Khalifa. 

The complex is being developed by Emaar, another top state property developer in the United Arab Emirates. Its projects are bought up in one-two days: in one instance all the properties in a building were gone in 11 seconds due to advance orders. So you need to rush to book one of their properties.

It is profitable to buy Mina Rashid flats for letting. I would expect a rate of return of 9.5% per annum. 

There is one drawback — Emaar has stringent prepayment terms. You must pay 90% of the cost during the construction period and only 10% when you receive the keys.

Maritime City 

This is another alternative to Dubai Marina if you want to buy real estate by the sea at a low price and 20 minutes from the centre of Dubai. In future this area will attract a lot of tourists owing to the five-star hotels, restaurants and its own wharf which is scheduled for construction. The opening of a metro here will also play a role. 

I expect property prices to rise 15-20% a year, based on price dynamics in similar locations. 

At present a lot of transactions are being concluded here: in September 2023 I was involved in the sale of 19 flats.

Town Square

Hardly anyone has heard of this district. It is far from the sea and is not suitable for short-term lets, but is on the contrary perfect for long-term lets thanks to the sumptuous greenery, convenient parking options and the low-rise property development. Here the infrastructure for young kids is well developed  — from trampolines to skate boarding. The district also has a big park. 

The average return on a let is 7% per annum. Meanwhile, one of the recent projects — Nshama Aria — promises price growth of 10% a year, which is not bad for the economy-class market segment.

Dubai South

This is another little-known area. It is part of the 2040 Dubai infrastructure development master plan. After the Al-Maktoum International Airport opens, generating 200,000 jobs, major companies will relocate their headquarters here. Dubai South will become an important business and service centre of the city, triggering significant demand for new real estate nearby.

Another advantage is the opportunity to do business. Dubai South is one of the country’s free economic zones. In addition, prices are affordable here, starting at USD 160,000, while the return on letting will reach 8% per annum.

There is one drawback  — it is far from the centre. At the same time, Dubai South offers everything you need: a shopping centre, metro and entertainment options. Expo-2020 was held here in 2021-2022. An eco-city is being built in its place right now, 60% covered by greenery.

So What is the Opportunity?

Today Dubai has at least five districts with high-yield potential little known to most investors. For the time being, the cost per square metre is comparatively low and there is no competition. If you are contemplating making an investment, I advise you to select one of the aforementioned districts. In a couple of years, when the construction work is finished, prices in each district will shoot up.

Сover photo: Denys Gromov (Pexels)