Mixed-use and master-planned communities across the UAE are delivering stronger rental yields and more resilient returns than traditional standalone residential projects, according to new data and industry leaders.
“Integrated developments with a combination of residential, retail, and lifestyle amenities continue to attract tenants, particularly those seeking convenience, access to community facilities, and proximity to their workplaces,” said Cherif Sleiman, Chief Revenue Officer at Property Finder. Sleiman said the trend reflects the appeal of well-connected, amenity-rich communities that cater to everyday needs.
“Our data shows that apartments make up 57 per cent of buyer demand and 78 per cent of rental searches, with interest growing most strongly in smaller one-bedroom and studio units. These homes provide both affordability and convenience, often situated in well-connected, amenity-rich communities that cater to lifestyle needs.” Property Finder data shows that mixed-use communities recorded the highest rental yields year-to-date at around 8 per cent, compared to 7 per cent for master-planned communities and 5 per cent for standalone residential buildings.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Premiums and steady demand
According to Property Finder, mixed-use communities are commanding rental premiums averaging 20–25 per cent this year, with prices consistently outperforming other segments. “Rental prices in these areas have consistently outperformed others, with premiums ranging between +14.3 per cent and +27.4 per cent, averaging around +20–25 per cent for the year,” Sleiman said, adding that demand has remained steady through 2025.
While rental yields are higher, capital appreciation remains strong across the board, with standalone communities seeing prices rise 16 per cent between January and October 2025, slightly ahead of mixed-use developments at 15 per cent. “This illustrates that mixed-use developments strike a balance, offering attractive rental returns alongside steady price growth,” he said.
Mixed-use and master-planned projects are attracting end-user-driven demand, especially from Dubai’s mid-income buyers. “Mortgage Finder data shows that the Dh20K–40K income group accounts for nearly 30 per cent of all mortgage requests, with 81 per cent of them purchasing homes to live in rather than for investment,” Sleiman noted.
He added that the data “demonstrates that buyers are moving into established, liveable developments rather than relying on speculative purchases… It’s a market increasingly defined by practical, needs-based decisions rather than short-term gains.”
Long-term stability and stronger growth
Ben Crompton, Managing Partner at Crompton Partners Estate Agents, said the diversified nature of mixed-use developments makes them more desirable for long-term investors. “Mixed-use developments tend to drive higher ROI in terms of capital appreciation. The better capital growth comes from the diversified nature of the project and its desirability for long-term stable tenants,” he said.
He noted that while rental yields can be higher in smaller standalone units, the long-term capital growth and tenant stability are stronger in mixed-use communities. “Single towers in multi-sub-developer projects can be very attractive in the short term, but over a longer time period, mixed-use will outperform.”
Crompton added that such developments “command both a rental and a price premium,” and that end users are willing to pay more for access to amenities and convenience. “Everything is about how attractive the project is to the end user. Whether it is a tenant willing to pay more for the same space to have access to more amenities, retail, or live close to their office… If you can provide amenity and quality of life to the person living in the unit, they will pay more.”
Looking ahead, Crompton said mixed-use developments will likely be “better insulated from downturns” because of their diverse tenant mix. “The diversity of tenants and quality of life should mean less rent and price volatility.”
Integrated living is driving investor confidence
From an operational standpoint, mixed-use communities are also proving more resilient and cost-efficient, said Jamal Lootah, President of the Middle East Facility Management Association (MEFMA). “Integrated mixed-use communities across the UAE have consistently performed better than single-purpose projects in both rental returns and long-term value,” Lootah said. “By combining places to live, work, and enjoy leisure, they attract stronger demand and typically achieve higher rental yields and capital appreciation. Investors tend to see steadier income and assets that retain their value more effectively over time.”
He explained that diversification of use within these developments helps them weather market fluctuations. “If the residential leasing side faces a slow period, the retail or office components might still perform well, and vice versa. The result is more stable occupancy and income even during economic downturns.”
Lootah added that shared infrastructure brings major cost savings for owners. “Integrated communities typically centralise many services and facilities, which drives cost efficiency. Owners can reduce operating costs by leveraging shared services like district cooling, unified security, and centralised maintenance.”
A shift shaping the future skyline
Experts agree that mixed-use and integrated communities are becoming the new standard for development in the UAE. “Occupancy rates and tenant retention tend to be higher in mixed-use, integrated communities compared to standalone projects,” Lootah said. “The convenience and lifestyle benefits of having shops, cafes, offices, and homes all in one place mean people stay longer and vacancies remain low.”
He added that the shift is in line with urban strategies such as Dubai’s 2040 Urban Master Plan, which prioritizes walkable, mixed-use neighbourhoods. “Developers across Dubai, Abu Dhabi, and the Northern Emirates are aligning with this vision, shaping a future where new projects resemble self-sustained mini-cities rather than isolated towers,” he explained.
Still, experts noted that standalone developments will not disappear entirely. “Standalone developments will continue to have a place,” said Sleiman. “Dubai’s market has always been diverse, and there is room for both approaches.” Crompton agreed: “They will always be required and will always be built… Standalone buildings are faster and cheaper to construct and cheaper to maintain.”
www.khaleejtimes.com (Article Sourced Website)
#UAE #mixeduse #communities #profitable #standalone #buildings