For a real estate investor, the most appealing among all calculations of revenue and expenses is surely the return on investment, or the property’s income as a percentage of capital expenditure.

Dubai’s realty market has been the clear regional leader for years, and rental yield in some parts of the emirate dwarfs the returns offered by prime properties in global real estate hubs like London and Hong Kong. Smaller properties always attract a larger number of buyers and renters, which is why studio apartments in metropolises around the world are rarely found vacant. The same is the case in Dubai, where studio units offer some of the best returns on investment.

To help you with your investment decision, Bayut.com has listed the key localities of Dubai where studio units earned the maximum rental yield in May 2016.

Top Dubai localities with respect to studio unit yield

1. Dubai Silicon Oasis

2. Dubai Sports City

3. IMPZ

4. Jumeirah Village Circle (JVC)

5. Discovery Gardens

6. Motor City

7. International City

For the month of May, Dubai Silicon Oasis topped the rental yield chart with numbers that tipped the 11% mark. The community is a popular suburban locality, earning unit owners an average rent of AED 47,000. Next on the list was Dubai Sports City, a community rapidly gaining popularity with residents owing to its well-laid-out design, broad avenues and a host of options to engage in sports. With average studio unit being rented out for AED 50,000, the rental yield for Dubai Sports City was recorded at 10%.

Studio apartments in International Media Production Zone (IMPZ) and Jumeirah Village Circle, communities lying on either side of the main Sheikh Mohammed Bin Zayed Road, returned average yields of 9%. The two localities fall in the city’s south-eastern suburbs and earned owners average rent of AED 42,000 and AED 53,000, respectively, In May 2016.

Also yielding 9% in rents was Discovery Gardens. The suburban locality is famous for its green spaces and a peaceful environment away from the noisy city centre. Studio apartments here earned an average of AED 47,000 in the fifth month of the year. The locality is situated close to the iconic Ibn Battuta Mall, which is among the top retail and entertainment destinations in all off Dubai.

Real estate values in the Discovery Gardens are expected to go up once the area gets the Metro Red Line extension route, as well as its closeness to the Expo 2020 site.

Both Motor City and International City are residential areas popular with tenants looking for practicality coupled with affordability. International City is one of the most affordable areas of Dubai for renting apartments and also one of the most populous. Studio units here were being rented out for AED 31,000 on average, but affordable unit prices meant the rental yield still remained high at 9%. On the other hand, studio units in Motor City cost AED 59,000 to rent on average and provided an impressive yield of 9% in May.