A new report by Chestertons MENA has identified six fast-growing residential communities in Dubai where first-time buyers are finding both affordability and impressive rental yields, with some locations offering returns as high as 7.39 per cent.
The real estate consultancy said a combination of improved infrastructure, off-plan pricing, and supportive buyer initiatives is driving demand in areas such as Jumeirah Village Circle (JVC), DAMAC Island, Dubai South, Meydan City, Dubai Marina, and Downtown Dubai.
“These are not just affordable entry points, they’re smart long-term investments,” said Mania Merrikhi, Chief Operating Officer and Managing Director at Chestertons MENA. “The demand is increasingly driven by younger and international buyers seeking lifestyle, value, and long-term growth.”
At the top of the list is Jumeirah Village Circle (JVC), which offers yields of 7.39 per cent with average prices around AED 1,238 per sq. ft.. DAMAC Island, an off-plan development, offers similarly high returns at 7.38 per cent, with units priced as low as AED 823 per sq. ft.
Dubai South and Meydan City also stand out, with average yields of 6.77 per cent and 7.14 per cent respectively — both benefiting from master-planned infrastructure and growing family appeal. Even in more central and high-end locations like Dubai Marina and Downtown Dubai, yields remain competitive at 6.24 per cent and 6 per cent, highlighting continued investor appetite across price tiers.
Market shift favours master-planned suburbs
The report points to a broader shift in buyer behaviour, as demand moves beyond traditional luxury hubs into well-connected, suburban-style communities.
With central land becoming increasingly scarce, developers like Emaar and Binghatti are doubling down on new master plans, while government agencies such as the RTA and Dubai Land Department continue to invest in long-term growth.
“Full-service communities offering convenience, amenities, and affordability are becoming the new standard,” said Mohamed Mussa, Executive Director of Chestertons MENA.
“We’re also seeing a new wave of family-oriented investors entering the market, helped by more flexible lending and policy support.”
First-time buyers, in particular, are benefiting from reduced down payment requirements and developer-bank mortgage tie-ups, which have lowered barriers to entry. These developments align with the UAE’s broader economic diversification plans, including the emirate’s D33 agenda — a roadmap expected to generate sustained urban and financial growth through 2033.
While Dubai remains the primary focus, Chestertons also pointed to growing interest in Abu Dhabi, where large-scale infrastructure projects and new residential schemes are attracting cross-emirate investment.
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