At the time of writing this post:
The cheapest residential property for sale in Dubai at this time is a studio apartment in International City for 180,000 dirhams (aed) or about $49,000US or £37,000. For that you get about 370 square feet of unfurnished living space.
“International City” is a themed development of clusters of apartments. It’s not a mega-luxury area, in fact it can be said to be distinctly working-class. Tens of thousands of people live there, mainly in studio and one bedroom apartments. Residents of International City make their daily commute to downtown Dubai to work in offices, shops, hotels, developments and government buildings. Here’s the important part for any real estate investor considering a little flutter on Dubai properties: Almost everyone who lives in International City is renting.
So, International City apartments actually make decent investments which is why people buy them. They rent out for about aed 30,000 to aed 35,000 a year giving the owner a nice yield of 10% to 12% after paying the service charge and for any routine maintenance.
Developers are still working on some rather nice looking projects in International City. For example, LAWNZ by Danube Properties looks mega-glamorous:
If the finished project is even remotely close to what is promised in the video it will definitely mark a significant improvement in overall living standards in International City.