The UAE real estate market is witnessing a significant shift as mixed-use communities emerge as the most profitable investment option, outperforming traditional standalone residential buildings. According to recent data, mixed-use developments have achieved the highest rental yields year-to-date at approximately 8%, compared to 7% for master-planned communities and 5% for standalone residential projects. This trend underscores the growing preference for integrated living spaces that combine residential, retail, and lifestyle amenities. Cherif Sleiman, Chief Revenue Officer at Property Finder, highlighted that such developments attract tenants seeking convenience, community facilities, and proximity to workplaces. The demand for smaller, affordable units like one-bedroom apartments and studios has surged, with apartments constituting 57% of buyer demand and 78% of rental searches. Mixed-use communities also command rental premiums averaging 20–25%, with steady demand throughout 2025. While standalone buildings have seen a 16% price appreciation, slightly higher than mixed-use developments at 15%, the latter offers a balanced combination of rental returns and capital growth. Experts like Ben Crompton of Crompton Partners Estate Agents emphasize that mixed-use projects provide long-term stability, higher ROI, and resilience against market downturns due to their diversified tenant mix. Jamal Lootah, President of MEFMA, noted that integrated communities benefit from shared infrastructure, reducing operational costs and ensuring stable occupancy. This shift aligns with urban strategies like Dubai’s 2040 Urban Master Plan, which promotes walkable, mixed-use neighborhoods. While standalone developments will persist, the future of UAE real estate is increasingly defined by self-sustained, amenity-rich communities.
UAE: Why mixed-use communities are more profitable than standalone buildings
