Investments are the way to go if you want to make an income over the long term. The best asset to invest in the United Arab Emirates is real estate despite the constant ups and downs in the property market.

Investing in real estate has always produced a good return on investment compared to the other types of investments in the country.

You can purchase freehold property for sale and then make a passive income through rental money in the UAE. We have researched to compile a list of 7 top areas to buy property in the country for rental earnings.

7 Top Areas to Purchase Home in UAE for Rental Earnings

1-  Dubai Marine Area

Famous for its beautiful waterfront buildings, Dubai marine area is another name for deluxe and style. It is the third most profitable area in Dubai, with an annual rental income of 6%. 

Furthermore, tenants get in-house facilities in Dubai’s marine area, which makes it an even more desirable community to buy a freehold property for sale. 

In the community, the annual rental price for flats is around 60,000 AED, and the sales price is 830,000 AED. You can rent a studio apartment in the community for about 45,000 AED per year.

2- Al Reef District

 The Al Reef district is a beautiful place for families as it is located in the peaceful suburbs of Abu Dhabi. It’s also ideal for earning a good rental income. Furthermore, the Al Reef district ranks second in our list with a rental income of 7.5%. 

It has two communities — Al Reef Downtown and Al Reef Villas. The lowest rent for a single-bedroom apartment in this area is 48000 AED, while the lowest rent for a three-bed apartment is 90,000 AED.

You can also invest in one of the gorgeous villas in this community. The villa rents differ but fall between AED 80,000 to AED 165,000. 

As Covid-19 motivated people to start living in more spacious settings, the Al Reef district saw a 4% growth in the sales of its apartments and villas. So, if you buy an Ajman freehold property here, you can expect a higher rental income as the demand for this project has increased since the pandemic.

3- Al Reem Island

Al Reem Island offers the highest rental income in the capital city, with an average of 6.8%. It is a project with high-rise buildings near Al Maryah Island, Saadiyat Island, and the Abu Dhabi mainland.

It boasts the famous gate towers, which looks like Stonehenge, and most of the villas, apartment, and penthouses in Al Reem Island face the Arabian gulf.

The rent for a single-bedroom apartment falls between AED 50,000 to AED 70,000, and a studio apartment starts from AED 21,000. And the annual rent for a lavish four-bed apartment in Al Reem Island is as high as 240,000 AED.

4- YAS Island 

YAS Island, along with al Raha beach, offers the fifth-highest rental income in Abu Dhabi on an average of 6%. 

It is one of the most sought-after areas in Abu Dhabi to invest in freehold property for sale.

In 2020, YAS Island observed a 6% decline in the prices of its flats and a 12% increase in its villas.

One-bed and three-bed flats on the island have annual rental prices of around 70,000 AED and 190,000 AED, respectively.

Tenants can book a three-bedroom villa in the area for around 160,000 AED per year and a five-bedroom one for between 240,000 AED to 300,000 AED.

5- Al Ghadeer District

Al Ghadeer is a project of Aldar, a prominent real estate agency in the UAE. 

Al Ghadeer is present on the border of Abu Dhabi and Dubai.

Crompton partners report that Al Ghadeer produces the highest rental income in the country, with an average income of 8%. Al Ghadir has one and two-room apartments whose rent begins from 22,000 AED for one-room apartments and can reach as high as 43,000 AED for two-room ones.

Crompton’s partners also reported that in 2020, the sale prices of apartments in the Al Ghadir district decreased by about 8%.

6- Al Nuaimiya 

 Al Nuamiaya towers is a state-of-the-art project for investing in real estate and is located on the Sharjah-Ajman border. The community connects to major highways like E11, which makes it easy for residents to commute. In addition, it is close to hospitals, schools, shopping centers, and grocery stores.

You can expect an annual average rent of 15,000 AED for a studio apartment, 20,000 AED for one-bedroom flats, and AED 230,000 for two-bed flats here.

You can buy a studio apartment in Al Nuaimiya for around 184,000 AED, one bed flat for 322,000 AED, and a two-bed flat for 388,000 AED.

Due to such a lucrative rent, this place is one of the best neighborhoods to buy Ajman freehold property for rental earnings.

7-  Saadiyat Island

Developed by Aldar property developers, Saadiyat island is a well-known cultural center in Abu Dhabi. It is a sought-after community by global investors, thanks to its regular art exhibitions, famous museums, and cultural attractions.

If you wish to buy a studio apartment or villa in Saadiyat island, you may have to pay around 663,000 AED and 6180,000 AED, respectively. Sounds super expensive? 

Yes, it is, but it will pay off as the average ROI, landlords earn from flats in this area is 6.23%. 

Moreover, the price of single, double, and triple-bedroom flats in Saadiyat island averages at 2.1, 2.8, and 4.4 million AED, respectively.

Bottom Line

Residential property investment is arguably the most critical commitment of an individual’s life. 

In UAE and especially in Dubai, numerous transactions happens every day. Therefore, selecting a place to buy a home is super challenging here. 

You can invest in a luxury place boasting high-rise buildings and existence-sized structures, like Dubai Marina. Or you can opt to invest in an affordable Ajman freehold property. The options are countless in this beautiful country, and profitability is guaranteed.