The most profitable areas in Dubai for renting out

Investors often ask us which area is the most profitable to buy an apartment for renting out. Let's simply refer to the rental property statistics for Dubai in 2023 and look at the average rental rates and rental price growth.

Where it's more profitable to rent out a flat

In the apartment segment, among the areas with relatively affordable rent, JVC enjoys the highest demand. During the 1st half of 2023, apartment rents here increased by 15-18%, depending on the specific residential complex. According to the Dubai Land Department, the average annual rent here increased by 7.76% to around $14,000.

Pricier apartments

Those willing to rent expensive apartments most often look for properties in the Dubai Marina area. It was the most sought-after area by the end of the 1st quarter of 2023. The average annual rent for a luxury apartment here was $28,530, a 7.01% increase. The rise in the already high price may be due to landlords setting inflated prices. After all, Dubai Marina is a brand in itself.

Where it's more profitable to rent out a villa

Among tenants looking for affordably priced villas, the Damac Hills 2 area is the most sought-after. The average annual rent for an inexpensive villa here is $19,300, with a rental growth of 11.8%.

Finally, among areas with expensive villas, tenants most often choose Dubai Hills. The average annual rent here is $71,140, with a rental growth of 1.96%.