Overview of DAMAC Hills 2 (formerly Akoya) – Dubai

Strengths of the Community

DAMAC Hills 2 offers a well-positioned, amenity-rich master-planned community featuring lakes, a golf course, parks, and family-friendly infrastructure.
The area benefits from good accessibility via main roads (E77, etc.), giving it strong appeal for both end-users (families) and rental/investment demand.

It also provides a relatively affordable entry point compared to ultra-premium communities, making it attractive for mid- and upper-mid-tier investors.
Rental and resale markets show decent yields and upward potential in value.

Price Snapshot

Here are the typical current price ranges and averages for different property types in the community:

Apartments:
From approximately AED 940,000 on average (based on listings).
Listings show a wide range from around AED 400,000 up to AED 2.5 million for flats.

Townhouses:
Starting from around AED 1,250,000, with an average of about AED 1,900,000.
Typical sizes range between approximately 1,200 and 2,400 sq. ft.

Villas:
Asking prices roughly range from AED 1,300,000 up to AED 13,000,000.
A more realistic average for many mid-sized villas is between AED 1.8 million and AED 2.7 million.

Example (According to Betterhomes):

• 2-bed villa: ~ AED 1,455,000

• 3-bed villa: ~ AED 1,700,000

• 4-bed villa: ~ AED 2,150,000

Sale transaction data:
The average price over the last 12 months in the community is approximately AED 1,662,000.

Return on Investment (ROI & Rental Yields)

As an agent focusing on investors, this is key.

According to Betterhomes (villas):

• 2-bed villa: ~5.84%

• 3-bed villa: ~5.88%

• 4-bed villa: ~5.35%

• 5-bed villa: ~6.06%

Another source (Betterhomes area guide) reports:

• Studio: ~12% (likely optimistic, for smaller units)

• 1-bed apartment: ~7.50%

• 2-bed apartment: ~7.35%

• 3-bed apartment: ~6.8%

• 3-bed villa: ~7%

• 4-bed villa: ~6.9%

• 5-bed villa: ~6.5%

A general market article notes: “average ROI ~6.86%” for villas.

Note: ROIs vary significantly based on unit size, exact cluster, amenities, and whether the property is off-plan or ready.

Key Takeaways for Investors & Buyers

Entry Points:
For investors looking to enter at more affordable levels, apartments and smaller townhouses offer lower costs and better yields — often approaching 6–7% or more for some smaller units.

Larger Villas:
While larger villas tend to yield a lower gross percentage return (due to higher purchase prices), they may offer stronger capital appreciation potential, especially in premium plots or clusters.

Cluster and Location:
Units in single-row positions, with lake or park views, or located near community amenities tend to command premium pricing and appreciate faster.

Time Horizon:
Given the community is still developing many phases, a longer-term holding period (5+ years) is advisable for capital growth. Some articles suggest that certain units have already achieved 70–80% appreciation.

Rental Demand:
Rental demand remains healthy for family-type units, driven by lifestyle amenities and accessibility, which supports consistent occupancy.

Risk Factors:
As with all Dubai investments, key considerations include service charges, developer handover risk (for off-plan projects), supply trends, broader market risk, and liquidity when reselling.

Strategy for Agents Targeting First-Time Investors

• Highlight smaller townhouses or 2-/3-bedroom villas with strong yields for first-time investor clients.

• Present pay-in or payment-plan options for off-plan units when available, as many developers offer flexible terms.

• Emphasize lifestyle and family appeal for buyers purchasing for their own use — this enhances marketability.

• Incorporate scenario modelling in presentations.
  For example:

  • Purchase price: AED 1.7 million

  • Annual rent: AED 100,000

  • Gross yield: ~5.9% (before fees, management, and service charges)

  • Show a 5-year projection with potential appreciation at +3–5% per year, or +10–20% over 5 years.

• Provide cluster-specific examples with sale and rental comparables so the investor feels grounded in real data.