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Is Abu Dhabi or Dubai the Perfect Destination for Investing in a Villa?

The idea of buying a villa in the UAE can be one of the best decisions in your life. But deciding whether to purchase in Dubai or Abu Dhabi can be challenging as both the emirates have distinct advantages and attractions.

If you are moving to the United Arab Emirates, then it is a good idea to buy a house in the United Arab Emirates as properties are affordable, and you will get many advantages from owning a property in the country.

Purchasing a villa in either of the two emirates is an attractive option, but the question remains how to choose one emirate over the other?

Both the emirates offer investors many benefits. It will be wise to choose the emirate that will make your purpose of investing happen.

If you want to purchase a villa for staying then choose the emirate in which you work. Else, if your purpose is to sell out the estate after some time or rent it out, then it makes sense to purchase it in that emirate where you get the best return on investment (RoI).

To make an informed decision regarding buying a villa in Abu Dhabi or Dubai, it is good to look at the top areas of villas’ availability for sale in both the emirates.

Dubai

The top areas in Dubai, where you will find ample availability of villas for sale are:

Town Square

Town Square can be at the top of the list when purchasing a villa in Dubai. Located close to the Al Qudra Road, the area hosts best-in-class villas in Dubai with all the necessary amenities for a convenient lifestyle.

The area is close to many top schools and has 16 community gardens and the massive Town Square Recreational Park. You will find many green spaces around your home, and it is something you do not see in most other Dubai residential neighborhoods.

The area is also an excellent place to invest in a villa for renting or reselling. The average sales price per square foot for a 3-bedroom and 4-bedroom villa for sale in Town Square varies between AED 400 to AED 600.

In the area, the average rental price per sq. ft. for 3 & 4-bedroom villas is AED 39.

The current prices of 3 and 4-bedroom villas in the area are AED 1.3M and 1.5M, respectively.

You can expect the average RoI for a villa in Town Square at 6.5%.

Green Community

Buying villas in Green Community can get you a significant ROI. It is an eco-friendly community with numerous parks and gardens, extending an area of 67 hectares. The site has excellent amenities and facilities.

The convenient location is a key advantage of the area, with direct access to E311 Sheikh Mohammed Bin Zayed Road and D57 Jebel Ali-Al Hibab Road.

In the area, the average sales price per square foot for 3, 4, and 5-bed villas is AED 563, AED 609, and AED 522, respectively. And the respective rental price per square foot is AED 34, AED 38, and AED 31.

Therefore, an investor in the Green Community can expect an RoI of 6.2 percent.

You will find 3, 4, and 5-bedroom villas for sale in the area, with the prices of AED 2.4M, AED 2.6M, and AED 3.2M, respectively, on average.

Jumeirah Village Circle

Villas in Jumeirah Village Circle are appealing. The area has vast lush green landscaping and is a growing investment destination, with proximity to main business areas, like Dubai Internet City, Dubai Media City, Dubai Marina, and JLT. Residents can enjoy a classic suburban lifestyle in the area.

While the average sales prices per square foot in the area for 2, 3, 4 and 5-bedroom villas are AED 609, AED 586, AED 533, and AED 569, respectively; the corresponding rents per square foot are AED 31, AED 32, AED 34 and AED 35 respectively on an average.

An investment in a villa in the area can give you an RoI of at least 6 percent.

You can buy 2, 3, 4, and 5-bedroom villas in the area at AED 1.9M, AED 1.7M, AED 2M, and AED 2.4M, respectively.

Abu Dhabi

Due to the presence of a matured property market, you can quickly find a villa for sale in Abu Dhabi. And the top areas are:

Shakhbout City (Khalifa City B)

With numerous villas for sale in Shakhbout City, you can quickly purchase a villa in the area located on Abu Dhabi’s outskirts.

Shakhbout City is a perfect place for raising a family as there are many enjoyment scopes, well-connected roads, and many educational institutions.

When it comes to a villa’s RoI in the area, you can expect that at 7.7 percent.

The sale prices per square foot for 5 and 6-bedroom villas in the area are at AED 448, and AED 502, respectively, and the rental cost per square foot are AED 33 and AED 34, respectively.

Mohammed Bin Zayed City

If you plan to buy a house in Abu Dhabi, Mohammed Bin Zayed City can be the ideal location as it can give you an excellent RoI and a peaceful place to live in with your family.

In the area, some world-class amenities and facilities are attracting potential investors.

Mohammed Bin Zayed City can be the best place to buy a villa in Abu Dhabi, as you can expect an excellent RoI of 7.7 percent.

The average sales prices per square foot for 5, 6, and 7-bedroom villas in the area are AED 507, AED 441, and AED 469, respectively. And the rental prices per square foot are AED 33, AED 33.5, and AED 34, respectively.

The Final Thoughts

Given the significant benefits of owning a villa, it is a wise investment rather than looking for a property for rent in the UAE.

Make yourself clear about your needs to choose the right emirate—Abu Dhabi or Dubai—for purchasing a villa. Although both the emirates are the perfect destinations for property investments, your specific needs can call for a particular area in one of the two emirates.

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