Dubai Marina & The Palm Jumeirah
The Dubai Marina and the Palm Jumeirah are two of the areas that generate the highest returns in Dubai. These areas are attractive to emigrants and tourists making the investor appeal to 2 target groups here.
The Dubai Marina
Dubai Marina is an affluent residential area known for Jumeirah Beach Residence, a leisure complex with outdoor restaurants and white sandy beaches. Dubai Marina is a huge man-made marina. Along the water of the Dubai Marina marina runs a lively promenade called the Marina Walk, it contains many restaurants, bars and terraces. The Dubai Marina Mall houses lots of stores from major chains and luxury fashion brands. Luxury yachts sail through the large marina where all kinds of activities are available, ranging from jet skiing to skydiving.
The Dubai Marina district is seen as the new Dubai, as this mega-project was built to spread residents more throughout Dubai. The Dubai Marina is very lively in the evening, partly because of the numerous restaurants and terraces.
The Dubai Marina is an area frequently visited by tourists. The Dubai Marina consists mainly of hotels and residential towers with studios, 1, 2 and 3 bedroom apartments.
The Palm Jumeirah
Palm Jumeirah Palm Island is made in the shape of a palm tree. It consists of a trunk, a crown with 16 leaves and a crescent around an island that forms 11 kilometers of breakwater. The Palm Jumeirah is located next to the Dubai Marina. Palm Jumeirah's palm tree consists of a trunk with 16 branches and is 5 kilometers long.
The crown is connected to the mainland by a 300-meter-long bridge and the crescent is connected to the top of the palm by a submarine tunnel. At the end of the trunk is the famous Atlantis Hotel.
The palm island of The Palm Jumeirah is touted as one of the best resorts in the world. The Palm Jumeirah is an area frequented by tourists and inhabited by emigrants. The Palm Jumeirah consists mainly of villas on the 16 leaves and at the beginning of the trunk are a number of hotels, residential towers with studios, 1, 2 and 3 bedroom apartments.
ROI and capital appreciation
Yields and value increases in the Dubai Marina and Palm Jumeirah are similar. Villas, studios and 1 bedroom apartments are doing best in rentals in these regions. It is advisable to rent the properties for short-term rentals. Depending on the developer, studios start at around €300.000, 1 bedroom apartments at around €500.000 and villas at around €3.000.000.
Off-plan
New construction in both regions increases in value by around 5% to 15% during the construction phase, which is often 3 years. The short-term rental net returns on the initial investment are between 7% and 9% 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. The short-term rental net returns on initial investment are between 5% and 7% per year for existing construction.
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