Downtown Dubai & Business Bay

To get right to the point, Downtown Dubai and Business Bay are two of the areas that generate the highest returns in Dubai. These areas are attractive to both expatriates and tourists, thus appealing to two target groups.

Downtown Dubai

Downtown Dubai is an urban district south of the Dubai Creek. Previously known as Downtown Burj Dubai, the district was almost literally built from the ground up. At the turn of the century, it was still mostly sand.

Now Downtown Dubai is enclosed by Business Bay, the Sheikh Mohammed bin Rashid Boulevard, which leads you past Dubai's most modern buildings. The buildings in Downtown Dubai are mostly residential and are often inhabited by expatriates, who come to Dubai because of more and more companies settling in the city.

Step inside the ring road of Downtown Dubai and you immediately catch some of Dubai's most iconic structures and landmarks, such as: the Burj Khalifa (The World's Tallest Tower), the Dubai Fountain (The World's Largest Fountain) and the Dubai Mall (The World's Largest Shopping Center). It is these structures in particular that make Downtown Dubai so popular for tourists.

Business Bay

Business Bay borders Downtown Dubai and is right next to the city center. This is the most up-and-coming district and is Dubai's commercial hub. Tall towers and hotels stand side by side along the major highway, Sheikh Zayed Road, and new developments along the recently completed Dubai Canal are still under construction.

Business Bay is best known for its upscale restaurants, lounges and bars in towering hotels. Thanks to its location, many of the clubs, bars and restaurants in the skyscrapers also offer stunning views of the city, especially at night.

Business Bay is Dubai's financial district. Many offices and companies choose to locate their offices in this area. These offices ensure that the demand from expats in Business Bay is very high.

ROI and capital appreciation

Yields and value increases in Downtown Dubai and Business Bay are similar. The studios and 1 bedroom apartments are doing best in rentals in these regions. It is recommended to rent out the apartments for short-term. Depending on the developer, studios start at around €300.000 and one bedroom apartments at around €500.000.

Off-plan 

New construction in both regions increases in value by around 10% to 20% during the construction phase, which is often 3 years. The short-term rental net returns on the initial investment are between 6% and 8% net. After completion, the increase in value in this region is between 2% and 5% per year.

Ready Built

Existing construction in both regions is experiencing value appreciation between 2% and 5% per year. Short-term rental net returns on initial investment are between 4% and 6% per year for existing construction.

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