Damac Hills 2: The 2026 Investor Briefing
Damac Hills 2, formerly Akoya Oxygen, is a large freehold villa and townhouse community south of Studio City and Al Maktoum International, developed by Damac Properties since 2014. The community covers approximately 55 million square feet of land with three-bedroom and four-bedroom townhouse stock as the dominant inventory.
Damac Hills 2 is positioned as an affordable family-villa community with extensive amenity infrastructure including water park, sports facilities, and community retail. The community sits roughly 30 minutes drive from Downtown Dubai during off-peak hours and 45 minutes during morning rush. The buyer profile is dominated by mid-income families and yield investors targeting AED 70,000 to AED 110,000 annual rent per townhouse.
This guide answers the three questions investors ask before placing capital in Damac Hills 2: which sub-zones carry the inventory you are likely to buy, what price and yield you should expect on like-for-like product in 2026, and how the area compares to Damac Hills (the original) and Town Square. Numbers reference Dubai Land Department transaction data, RERA service charge filings, and Oliva project-level methodology.
Oliva is a Dubai-licensed real estate brokerage (RERA BRN 1573501, DLD Broker Card 92025) and we score every project independently. We carry no paid placements and we publish the methodology behind every score on the project page.
Key Takeaways
- Damac Hills 2 is positioned as the affordable masterplanned community south of Al Maktoum.
- 2026 price band runs AED 600 to AED 950 per square foot, with median around AED 780 per square foot.
- Gross rental yield runs 6.0% to 7.5% depending on unit type and building age. Net yield averages 200 to 300bps lower after service charges and management.
- Service charges sit between AED 3 and AED 6 per square foot annually.
- Sub-zones inside the masterplan: the masterplan splits into thematic sub-clusters branded as Akoya, Just Cavalli, Trump Estates, and selected newer Damac launches.
- Transit and connectivity: no metro access. 25 minutes to Mall of the Emirates, 35 minutes to DIFC, 22 minutes to Al Maktoum International Airport.
- The dominant developer footprint is held by Damac Properties (master developer).
Damac Hills 2 History and Current Character
Damac Hills 2, formerly Akoya Oxygen, is a large freehold villa and townhouse community south of Studio City and Al Maktoum International, developed by Damac Properties since 2014. The community covers approximately 55 million square feet of land with three-bedroom and four-bedroom townhouse stock as the dominant inventory.
Damac Hills 2 is positioned as an affordable family-villa community with extensive amenity infrastructure including water park, sports facilities, and community retail. The community sits roughly 30 minutes drive from Downtown Dubai during off-peak hours and 45 minutes during morning rush. The buyer profile is dominated by mid-income families and yield investors targeting AED 70,000 to AED 110,000 annual rent per townhouse.
The community sits adjacent to Damac Hills, Dubai Studio City, Town Square, which determines tenant migration patterns and resale liquidity. Investors should map the buyer profile to actual tenant velocity rather than asset-class generalisations: mid-income families, typically Indian, Pakistani, Filipino, and Arab expat households with one or two working adults and school-aged children.
Location, Access, and Why It Matters
no metro access. 25 minutes to Mall of the Emirates, 35 minutes to DIFC, 22 minutes to Al Maktoum International Airport.
Drive-time and metro access materially affect the rental band you can achieve. Properties within 10 minutes of a Metro station typically rent at a 5 to 12% premium per square foot versus comparable stock 20-plus minutes from rail, all else equal.
For Damac Hills 2, the practical commute footprint is family-oriented and car-dependent in the masterplanned villa case, and corporate-tenant car-and-metro mixed in the tower-cluster case.
Damac Hills 2 at a Glance
| Metric | 2026 value |
|---|---|
| Price per square foot (band) | AED 600 to AED 950 |
| Median price per square foot | AED 780 |
| Gross rental yield | 6.0% to 7.5% |
| Service charges | AED 3 to AED 6 per square foot |
| Master developer | Damac Properties (master developer) |
| Adjacent communities | Damac Hills, Dubai Studio City, Town Square |
Pricing reflects DLD-registered transactions in the trailing twelve months. Yield band reflects current-market gross rent comparables for like-for-like unit types.
Unit Mix and Buyer Profile
The dominant inventory in Damac Hills 2 is shaped by the masterplan brief. Damac Hills 2 is positioned as an affordable family-villa community with extensive amenity infrastructure including water park, sports facilities, and community retail. The community sits roughly 30 minutes drive from Downtown Dubai during off-peak hours and 45 minutes during morning rush. The buyer profile is dominated by mid-income families and yield investors targeting AED 70,000 to AED 110,000 annual rent per townhouse.
Tenant base: mid-income families, typically Indian, Pakistani, Filipino, and Arab expat households with one or two working adults and school-aged children. Investors should match unit type to the actual tenant pool. A 3-bed townhouse priced for a single corporate executive will rent slowly; the same townhouse priced for a family of four with school-aged children rents fast.
Studio and 1-bed product (where available) yields at the upper end of the gross yield band. 3-bed and larger product yields at the lower end. This is the standard Dubai apartment-rent-per-sqft inverse curve.
Transaction Volumes and Pricing 2021 to 2025
Per Dubai Land Department registry, Damac Hills 2 transaction velocity has tracked the broader Dubai cycle. 2021 marked the post-pandemic recovery; 2022 saw a step-change in absorption; 2023 and 2024 carried the strongest absolute appreciation.
2025 has shown moderation versus 2024 peak velocity, which is consistent with the overall Dubai market. Median per-sqft pricing has moved from the lower band toward the upper band over the five-year window.
Secondary market depth is improving as 2021 to 2022 launches deliver and feed secondary trade flow. New buyers in 2026 should expect transparent comparable inventory in sub-areas where ready stock is at scale.
Rental Yields and Service Charges
Gross yields in Damac Hills 2 run 6.0% to 7.5% in 2026. Net yield typically prints 200 to 300bps lower after deducting service charges (AED 3 to AED 6 per square foot), property management (5 to 8% of rent), municipality housing fee (5% of rent where landlord-paid), vacancy provision (4 to 6 weeks), and amortised DLD transfer fee (4% of price spread over the holding period).
Building-level service charge variability is the largest single swing factor in the net yield calculation. Always pull the building-specific service charge schedule and three-year history before purchase.
For a deeper unit-by-unit yield breakdown see Damac Hills 2 Rental Yields and Pricing 2026.
How Damac Hills 2 Compares to Damac Hills (the original) and Town Square
Versus Damac Hills (the original): Damac Hills 2 trades at a 35 to 45% discount per square foot to Damac Hills proper, with longer commute and more limited amenity floor.
Versus Town Square: Town Square sits closer to Al Qudra Road and offers Nshama-branded townhouse stock with comparable yield band but tighter price range.
Investor implication: which area you choose depends on your target tenant pool, holding horizon, and price-per-sqft entry threshold. Damac Hills 2 fits a buyer who values the affordable masterplanned community south of Al Maktoum.
Developers Active in Damac Hills 2
The dominant developer footprint is held by Damac Properties (master developer).
Developer track record matters because Dubai construction quality, handover punctuality, and post-handover building maintenance vary materially across the developer universe. Tier-one developers typically command a 5 to 15% per-sqft premium versus tier-two developers for comparable specification.
For a developer-by-developer breakdown of who has built what in Damac Hills 2, see Damac Hills 2 Best Developers and Track Record.
RERA, Escrow, and Buyer Protection
All Dubai off-plan sales must register with RERA under Law 8 of 2007 and operate a project-specific escrow account under Law 13 of 2008. Buyer payments enter the escrow and release to the developer on milestone completion. The escrow framework is the primary buyer protection on off-plan; never wire payment outside the registered escrow.
Ready-stock purchases register with the Dubai Land Department against a 4% transfer fee plus AED 580 administrative fee. The transfer is standard, no escrow involved, but you should pull the title deed (Tabu) and the service charge clearance certificate before closing.
Trakheesi advertising permits ensure the listing is real and registered to a licensed brokerage. Always check the Trakheesi number on Dubai REST or the DLD app before transacting.
How Oliva Helps You Invest in Damac Hills 2
Oliva surfaces every actively-marketed Damac Hills 2 project with a transparent score, the developer track record, the building-specific service charge history, and DLD transaction comparables. We are RERA-licensed (BRN 1573501), DLD Broker Card 92025, and we hold no paid placements.
Browse Damac Hills 2 projects on Oliva
Frequently Asked Questions
What is the price per square foot in Damac Hills 2 in 2026?
AED AED 780 per square foot is the 2026 median, with the band running AED 600 to AED 950 per square foot depending on building age, developer tier, and unit type.
What gross rental yield should I expect in Damac Hills 2?
6.0% to 7.5% gross. Studios and 1-bed product yield at the upper end; 3-bed and larger units at the lower end. Net yield typically prints 200 to 300bps below gross.
How much are service charges in Damac Hills 2?
AED 3 to AED 6 per square foot annually, depending on building age, amenity floor specification, and management quality.
Who is the master developer of Damac Hills 2?
Damac Properties (master developer). Most inventory traces back to the master developer.
How does Damac Hills 2 compare to Damac Hills (the original)?
Damac hills 2 trades at a 35 to 45% discount per square foot to damac hills proper, with longer commute and more limited amenity floor.
Is Damac Hills 2 freehold for foreign buyers?
Confirm freehold status on a per-project basis before buying. Most masterplanned communities in Dubai outside the historic mainland are freehold for all nationalities, but exceptions exist on a project basis. The DLD title deed will state freehold or leasehold tenure explicitly.
Explore further
The project, area, and developer this post covers, with live Dubai Land Department data.
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