Hi
“Location, location, location" is a cliché because it's true.
But in Dubai, it's more nuanced. Not all "good" locations perform equally. And some hyped areas are actually traps.
Our rule: We only buy in proven, high-demand areas.
90% of weak locations underperform and lose liquidity. We never chase yield outside core demand zones.
Here's our breakdown:
TIER 1: PROVEN PERFORMERS
1.Dubai Marina
Why it works:
- Established community with 15+ years of rental history
- Beach proximity + Metro access
- Strong mix of tourists, professionals, and residents
- Year-round demand across all rental durations
- High liquidity — buyers always available
Watch out for:
- Older towers with high service charges
- Units with poor layouts or no views
- Buildings with management issues
Typical yields: 7-9% net (higher with optimization)
2.Downtown Dubai
Why it works:
- Burj Khalifa views command premium
- Tourist magnet — strong short-term demand
- Corporate proximity — mid-term demand from professionals
- Prestige location — strong resale
Watch out for:
- High entry prices reduce yield percentages
- Some buildings have excessive service charges
- Tourist areas can have seasonality
Typical yields: 6-8% net (view units can exceed with short-term strategy)
3.JBR (Jumeirah Beach Residence)
Why it works:
- Beachfront with walk-in tourist traffic
- The Walk and Beach provide lifestyle amenities
- Strong short-term rental demand
- Consistent occupancy year-round
Watch out for:
- Older buildings with dated finishes
- Some units have noise issues
- Renovation essential in many units
Typical yields: 8-10% net (higher with renovation + short-term focus)
4.Business Bay
Why it works:
- Growing business district
- More affordable entry than Downtown/Marina
- Strong corporate mid-term demand
- Improving infrastructure and amenities
Watch out for:
- Some pockets are still developing
- Not all buildings have proven rental track records
- Less tourist demand than Marina/JBR
Typical yields: 8-10% net (value play with upside)
5.Palm Jumeirah
Why it works:
- Ultra-premium segment
- Strong demand from high-net-worth renters
- Trophy asset — always liquid at right price
- Unique product (island living)
Watch out for:
- Highest entry prices
- Return percentages can be lower
- Requires larger capital base
Typical yields: 5-7% net (but absolute returns significant)
TIER 2: PROCEED WITH CAUTION
- JLT (select towers only): Can work but very building-specific
- Dubai Hills: Growing but still proving rental demand
- Creek Harbour: New, unproven, supply concerns
TIER 3: AVOID FOR CASH FLOW
- Outer areas marketed on "future growth"
- New master-planned communities without rental history
- Areas relying on "upcoming infrastructure"
Projected demand is not proven demand. We don't speculate on locations.
The pattern:
The best locations share:
- 5+ years of rental track record
- Diverse tenant base (tourists + professionals + residents)
- Multiple demand drivers (beach, metro, business district)
- Strong resale liquidity
- Established building management
Next email: What to actually renovate — and what's a waste of money.
Arman