May 2021 Bluewaters Island Rental Yields Guide

The buildings of Bluewaters Island emerged above the morning mist. A modern mix of steel, cement, and limestone. Sturdy as cliffs and delicate as silver rods.

Are the rental yields also ‘emerging from the mist’ of average rental yields. Or not?

Let’s first find out what the average yields are. To set the benchmark. If you will. And then look at where Bluewaters stand.

Before diving in, know that experts consider 7%-to-8% a good rental yield. For Dubai. And other frontier markets like it.

The first table shows the Top 20 Rental Yields for Dubai’s seafront and water view properties. While the second table covers the Last 20 Units based on Rental Yields.

With 11.5% rental yields the best of the best are some studios at Damac’s Maison Prive. In Business Bay. Followed by 1-Bed in the Marina Suites. With 11.4%. Third, are 2-Bed in Marina Crown. Both in Dubai Marina

Notice how the cheaper location of Dubai Marina and Business Bay dominate? That’s the case in most cities.

This is a snapshot of the best rental yields in Dubai. The second table shows a very different image of Dubai. While analyzing The Last 20 Rental Yields in Dubai we discover that the worst is the 3-bed at the Fairmont the Palm. On the Palm Jumeirah. With 2.9%. That’s bad. That’s ugly.

Rental Yields in Bluewater Island

At the time of this writing, there are 450 units for sale in Bluewaters Island. And 233 units for rent.

Listed one-bedrooms go for an average of AED 2.34 mil ($ 644k). And rent for an average of AED 134k ($ 36k). Two bedrooms go for AED 3.1 mil ($ 850k) and rent for AED 169k ($47k). 3-bed come at AED 4.7 mil ($1.2 mil) and rent for AED 255k ($69k).

Let’s see how Bluewaters Island stacks-up. The first table shows the Top 10 Rental Yields in Bluewaters Island. Highlighted in yellow are the 3-bed townhouses at 8.1%. Followed by 1-bed apartments in Building 1 at 7.2%. And 2-bed townhouses at 7.1%. But the rest of the units don’t cross 7% in rental yields. So they’re marked in red.

In the second table, we have the Last 10 Rental Yields in Bluewaters Island. As you can see they go as low as 4.4% for a 2-Bed in Building 8. We’ve also added 3 more tables breaking down the rental yields by unit types. Scroll to the left for more.

In summary, most apartments in Bluewaters Island don’t cross the 7% Rental Yields mark. Yet they’re not the worst in the city. Nor in the world. Because in many places a 6% yield is very good. Even 4% is welcome news in major cities like London and New York. While 3% is a crazy good rental yield in Beijing and Mumbai.

Increase Yields with Short-Term Rentals ← a NEW lense

The latest market data shows how Bluewaters Island is not great at the yields game. Other communities perform better. 

Still. Bluewaters Island has an advantage no other community in Dubai has. Heck, no community in the world has.

The advantage is not just the seafront location. Nor the first-ever Caesar's Palace hotel outside Las Vegas. Or La Rotunda with the live entertainment venue. Not even 164 retail outlets. The unique advantage of Bluewaters Island is the tallest Ferris wheel in the world. Ain Dubai is the key to this community.

Because it will attract a year-round stream of tourists. Boosting yields with short-term rentals.

Clearly the government-owned developer Meraas did price-in the premium location. Being seafront and overlooking Palm Island wasn’t going to be cheap. That’s why yields are barely good.

But short term rentals can increase rental yields. In the three tables above we share the Top 10 Vacation Rental Yields for 1-bed, 2-bed, and 3-bed respectively.

The winner here is 1-bed in Building 10. Going from 5.6% yields with long-term rentals to 9.6% with short-term. That’s a 70% improvement. With vacation rentals, the lowest yield is 8.5%.

The 2-bed in the second table doesn’t perform as well. They all improve. But not as much. Most don’t cross the 7% mark. While the 3-bed in the third table is better off with long-term leases.

Measure What Matters

A big mistake many investors make is checking just one measure. Like looking only for rental yields. Because, usually, high yields don’t make a great investment.

There are other factors impacting the performance of a rental property. Like increased risk. Low cash-on-cash returns or little capital growth.

To be safe, we recommend that you check the Bluewaters Island Cash-on-Cash Guide. And the Bluewaters Island Profit Guide. And the Bluewaters Island Pricing Guide. They all add value to your research.

Buy in Bluewaters Island: Yes or Nay?

Since flats in Bluewaters Island are profitable, safe, and prestigious we do recommend buying flats in Bluewaters Island.

More so, since there won’t be any extra supply coming here. Because the island is pretty much developed.

That’s true for the entire area.

Except for the under-construction Dubai Harbour peninsula.

A strip of land filled with Miami style high-rise apartment buildings. Which we don’t expect to directly compete with Bluewaters.

Their market is different. Plus, as of today the flats there don’t perform as well.

While Bluewaters Island is more intimate. And the tallest Ferris Wheel in the world will attract many tourists.

With the potential of gaining even higher returns with short term lettings. Which will grow when Palm Jumeirah, Dubai Harbour, Bluewaters and the mainland are linked. By monorail, metro, tram, water and pedestrian bridges.

Transport-Plan-Bluewaters-Island-Dubai-Meraas-1

That’s when tourists and residents will be able to walk, ride a tram, metro or board a ferry. To and from each of these communities.

And let’s not forget the upcoming 1,100 berths marina and the Cruise Terminal. The modern 300,000 square feet luxury cruise terminals.

The present is profitable and the future is bright for Bluewaters Island.