According to a recent study, investments in some of Dubai’s most well-known school districts, like Mohammad Bin Rashid City and Al Khail, can yield returns of up to 43.7 percent over a five-year period.
In addition to commanding attractive rental yields of approximately 6 percent per year, residential projects located near reputable schools can yield returns on investments ranging from 22.5 percent to 39.6 percent over a three-year period.
According to AI-based research conducted by Realiste, a Dubai-based prop-tech company with global operations, some of the well-known schools that serve as catalysts for extremely high returns on real estate investments in Dubai are Sunmarke School in Jumeirah Village, GEMS Wellington Academy in Al Khail, and Hartland International School, run by prominent developer Sobha Group in Mohammad Bin Rashid City.
“Besides offering world-class education by some of the leading international institutions, high-end healthcare and recreational facilities and the multicultural atmosphere in Dubai enhance its reputation as a family-friendly city, leading to potentially top-notch returns for investments in residential projects in these areas,” Anastasia Denisova, CEO of Realiste – MENA, told Arabian Business.
Compared to other developed countries, Dubai offers significantly cheaper education costs. According to Realiste, the average annual tuition fees for an international school in Dubai are estimated to be $5,830 (AED 21,400), while in the US and Switzerland, the same amount is $38,000 and $48,000, respectively.
Sobha group leading the table
In the center of Dubai’s Mohammad Bin Rashid City, Sobha Hartland and Sobha Creek Vista Heights are two of the upscale residential developments with excellent projected returns of 43.7 percent and 39.6 percent over a 5-year and 3-year period, respectively.
In Sobha Hartland, the average price per square foot is estimated to be $552, whereas in Creek Vista Heights, it is $525.
The Sobha Group’s own The Hartland International School is close to the projects, which makes their strategic location the main driver of the expected excellent investment returns.
The school provides courses that are based on the UK project’s National Curriculum.
Due to their advantageous locations next to prestigious schools, other high-end residential projects like Dubai Hills Estate, Greenside Residence by Emaar, and Jumeirah Village Triangle are also expected to command high returns on investments.
Over a three-year period, investors can expect to receive a return of 22.5 percent from Dubai Hills Estate, which is located next to the GEMS Wellington Academy in Al Khail, and 26.9 percent from the recently launched Greenside Residence, which offers a unique choice of flats with any floor plan on any level.
Dubai Hills Estate is expected to cost $607 per square foot on average, while Emaar’s Greenside Residence is estimated to cost $548.
According to Realiste research, investors can expect to receive a 28.6 percent return on their investment in the Jumeirah Village Triangle, which is close to Sunmarke School, a British curriculum and IB World School in Dubai, and 26.1 percent return on their investment in Altai Tower at JVT, a new residential development by Tiger Properties, over a three- and five-year period, respectively.
“Residential projects in the vicinity of well-known schools in Dubai will have, on average, a quarter increase in prices over a five-year period,” the AI-driven Realiste study said.