Experts say Dubai’s waterfront properties generate up to 30% annual returns

Experts say Dubai's waterfront properties generate up to 30% annual returns

Property brokers and developers claim that because of the rush of new projects that have been started to address the lack of new units in certain locations, waterfront projects can provide buyers with an annual return of up to 30%.

Along with Maritime City and Palm Jebel Ali, Dubai Islands has undoubtedly been one of the most popular and sought-after locations in the emirate’s booming real estate market.

The Dubai Islands and Dubai South are the two areas in the emirate that are now in high demand, according to Manpreet Kaur, CEO and creator of Kirpa Properties.

“These two locations are hot cake at the moment. For any investor who invests in these locations, there is no no-brainer. If you look at any island or waterfront property in Dubai, prices have appreciated between 100 per cent and 1,500 per cent. Average capital appreciation in waterfront properties is around 20-30 per cent annually. If the construction period is three to four years, you’re expecting 70 per cent to 100 per cent appreciation, depending on where your plot is, how close it is to the water,” Kaur said, adding that these two projects cater to affordable and luxury segments of the investor base while Palm Jebel Ali is targeted at the ultra-luxury segment.

Dounia Fadi, Managing Director at eXp Realty Dubai, said there are various waterfront hotspots, such as Dubai Islands, Palm Jebel Ali, and Maritime City, that have proven to be a great magnet for investment. “We have seen that some people have accumulated up to 70 per cent or more and others around 30 per cent return on investment (RoI), depending on the time of entry,” said Fadi.

Maintaining growth momentum

Speaking on the fringes of the masterclass and panel discussion organized by AYS Developers, which set a Guinness World Record for the Largest Real Estate Training in the World in May, were Kaur and Fadi.

Marc Walters, Managing Director at Allsopp & Allsopp; Mariam AlQubaisi, CEO and Founder of Real al Qubaisi Properties; Dr. Salwa Arfoui, CEO and Co-Founder of Women of Vision and Regional Director at Next Level Real Estate Dubai, also participated in the panel discussion. They talked about the 2025 real estate market dynamics compared to 2024, Dubai’s 2040 vision, the growth trajectory of Dubai Islands and Jumeirah Village Circle (JVC), investment opportunities, and the role of women in the Dubai real estate industry.

According to Yulia Loshchukhina, CEO of AYS Developers, the UAE provides a remarkable setting for female professionals.

“The UAE is an incredibly pleasant and efficient country to work in as a woman. From government authorities to private vendors, the level of support, cooperation, and proactiveness we experience makes the development process seamless and well-structured. It’s a place where ambition is met with opportunity,” said Loshchukhina.

Dubai is a diverse market, and variety breeds greatness, according to Dr. Salwa Arfoui, regional director of Next Level Real Estate Dubai and CEO and co-founder of Women of Vision.

Developers’ opinions

According to Samer Ambar, co-founder and CEO of Reef Luxury Developments, Dubai Islands is expanding rapidly and will do so for the next year or two because to its excellent rental yields and potential for capital growth.

“We launched a project in this area because it has a strong growth potential. We see 20-30 per cent price and rental appreciation,” Ambar said during the launch of its first project, Reef 997. It aims to launch more projects on the Dubai Islands, as it has a good landbank.

“There are a lot of hot places and Dubai Islands is one of them. Dubailand and Al Furjan have strong potential too,” he added.

Rahul Chaudhary, Managing Director and CEO of CG Corp Global and CG Hospitality Holdings, sees the Dubai Islands is coming up as fast as Palm Jumeirah. “Dubai Islands has taken a lot of traction in terms of attracting investment. Also, we see the market is focusing on the new airport side as well,” he said.

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