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3 Phenomenal Dubai Property Investments

Updated: May 24, 2023

Dubai’s property market is one of the most volatile but also dynamic in the entire world. If you know the market, and do proper analysis before you invest, you can earn good returns.

Of course, good investments also depend on a bit of luck.

In this article, we look at 3 of the best-performing property investments in Dubai over the last 15 years.

Also, don’t miss our article on 3 of the worst-performing Dubai property investments right here on our website.

Historic capital appreciation returns and rental yields in JBR, Dubai Marina

JBR: Stellar Returns Thanks to a Bit of Luck

JBR or Jumeirah Beach Residence is a mega development comprising 40 towers. Launched back in 2002 by Dubai Properties, the development was completed in 2010.

Featuring more than 6,900 apartments, the 1.7km long JBR complex is one of the largest single-phase property developments in the world.

One of JBR’s towers is Rimal 3.

Back in 2008, you could buy a 3-bedroom apartment here directly from the developer for 658,000AED including fees. Today, in 2023, the same apartment sells for 2.4mill AED. That is a price increase of 265%, or 9% per year, over 15 years.

At the current market rent of 210,000AED, the gross rental yield is a whopping 32%. After expenses, the apartment earns you a net rental yield of 24%, based on the original purchase price.

What are the reasons behind these extraordinary returns?

Back in the day, Dubai Marina’s master plan envisioned the construction of hotels right on the beach, blocking the ocean views of apartments located in JBR.

As construction of new hotels was interrupted by the 2008 financial crisis, a stretch of publicly accessible beach remained undeveloped.

Due to the popularity of this public stretch of beach, the owner of the beachfront land - Dubai Holding - decided to build a public waterfront pedestrian mall instead of hotel towers.

Property prices in JBR back in 2008 were low as investors expected any views to be gone in just a few years. Thanks to the change in development plans, property prices skyrocketed.

In the 15 years that have since passed, Dubai Marina also added a variety of other attractions, such as Dubai Marina Mall and Ain Dubai, the world's tallest Ferris wheel.

Bluwaters Island - The Pinnacle of Luxury

Bluewaters island is a master development by property developer Meraas, featuring the aforementioned world's tallest Ferris wheel, a Ceasar's Palace Hotel, and numerous luxury residences. In 2016 the first properties were launched here, and a large number of units were sold off-plan - that is before the units were completed.

Back in 2017, you could buy a one-bedroom apartment in Bluewaters Island for 2.5mill AED including fees. The same unit today is valued at AED5.3mill, resulting in a 112% return over five and a half years, or 14.6% per year.

The return on investment is even higher when you take into consideration that the investor only had to pay down a small installment back in 2017, as this was an off-plan property with a payment plan. The full amount was only due on completion.

A one-bedroom apartment in Bluewaters fetches an annual rent of 210,000AED, delivering a 12% gross rental yield, or a 9% net rental yield, based on the original purchase price.

Historic capital appreciation returns and rental yields in Bluewaters Island, Dubai

Shoreline Apartments - The Beginning of Palm Jumeirah

The Shoreline Apartment development by Nakheel Properties on Palm Jumeirah consists of 20 residential buildings.

They were among the first properties launched on Palm Jumeirah more than twenty years ago.

Early investors who believed in Dubai and the vision of Palm Jumeirah at the time were able to snap up apartments here at rock-bottom prices.

Even as late as 2010, shortly after the 2008 financial crisis, Nakheel, the developer behind Palm Jumeirah and the Shoreline Apartments, sold units here at incredibly low prices.

For example, in 2010, a 2-bedroom apartment was sold here by the developer for around 1.1mill AED. Now valued at 4.85mill AED, the investment earned its owner a 350% return, or 12.3% per year, over 13 years.

As recently as 2022, an equivalent 2-bedroom apartment was rented out here for AED200,000 a year, earning the property's owner an 18.7% gross yield or 14% net yield based on the original purchase price.

Historic capital appreciation returns and rental yields in the Shoreline Apartments, Palm Jumeirah, Dubai

Dubai Has One of the World’s Most Diverse Property Markets.

Even during Dubai's current post-covid property boom, there are neighborhoods that have seen little to no increase in prices, while property values in prime areas have skyrocketed.

We analyze and estimate rental returns and capital appreciation potential for more than 100 neighborhoods in Dubai. We do so using historical data and projections on the upcoming supply of new units.

We use advanced cash flow analysis to compare the profitability of apartments, hotel apartments, villas, ready and off-plan properties, as well as all types of mortgages to make sure you do not overpay for your property.

We are 100% independent and have never earned a commission. That’s the only way we can provide completely impartial advice.

Investing just 1% of your property value in cash flow-based analysis with us before you buy can improve your annual returns by multiple percentage points.


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