Dubai’s real estate market presents distinct opportunities with its array of waterfront and city view properties, two highly desirable investment options. But for investors, which property type offers a greater return?
According to experts, waterfront properties in Dubai have shown stronger appreciation trends than their city view counterparts, reported by Arabian Business.
High-net-worth individuals and seasoned investors are increasingly gravitating toward waterfront areas, drawn to their lifestyle appeal and scenic vistas.
“The appeal of waterfront locations, such as those along the coast or near marinas, has driven demand due to lifestyle preferences, scenic views, and with new projects being launched, such as Rashid Marina and Yachts, Maritime City, Emaar Beachfront, and Dubai Harbour,” notes Rennie Sanger, Senior Off Plan & Investment Consultant at haus & haus Real Estate.
Distinct buyer demographic
While waterfront properties often enjoy prime locations, added amenities, and considerable value growth, city view properties maintain strong demand, especially among local buyers, professionals, and first-time investors.
These properties, typically closer to business districts and urban amenities, often offer higher rental yields, averaging between 6-8%, compared to the 4-6% yield seen with waterfront properties, says Sidharth Appaiah of Betterhomes. Appaiah also highlights the advantages of city views, which include greater connectivity and generally lower entry prices.
Ben Blackwell, Area Manager at Betterhomes, emphasises that waterfront homes globally command a premium due to their exclusivity, and Dubai is no different.
“Wherever you are in the world, waterfront homes are always more sought after, and Dubai is no exception,” he explains. While city views offer practical benefits, Blackwell notes that the lifestyle perks and scarcity of waterfront properties drive their capital appreciation, making them attractive for both holiday homes and secondary residences.
The buyer demographics differ as well, with city view properties attracting yield-focused investors and professionals, while waterfront properties appeal to luxury buyers and international investors seeking trophy assets.
As Sanger points out, “With the plan to grow the population to 7.8 million people in Dubai by 2040, demand remains strong for waterfront communities.”
Each property type offers unique benefits, so experts advise prospective investors to align their purchase with their financial goals and lifestyle preferences.
This story first appeared on Arabian Business.