The apartment rental market in Dubai, UAE, saw values edge down further, whereas in neighbouring emirate Abu Dhabi the scenario was different - with the market witnessing a resurge with an upward movement, said a report.
As always, the two main markets of the UAE continued to lure investors with relatively affordable prices and attractive rental returns on investment, with Dubai recording real estate transactions worth an impressive $43 billion by the end of August 2016, according to UAE-based property portal Bayut.
In terms of yields, Dubai’s apartment rental segment stayed relatively stable in August 2016, offering rental yields as high as 7.6 per cent in select categories.
Per Bayut.com’s calculations, average rents across the emirate fell by five per cent in August compared to values in July 2016, while average yield was recorded at 5.6 per cent across all bed categories.
The average rent for studio apartments in Dubai fell five per cent to Dh54,000 in August 2016 from Dh57,000 in July 2016. Despite the drop, the apartment category offered the highest property yield at 7.6 per cent, still garnering abundant interest from investors.
Rents for one-bed units performed better, going up by one per cent to Dh93,000 on average in August, coupled with an attractive rental yield of 6.8 per cent. Two-bed units fetched owners Dh142,000 in August on average, declining a mere two per cent compared with the average rent in July. The average yield for the category remained six per cent.
Three-bed units commanded an average rent of Dh197,000 on average after falling four per cent from July’s Dh206,000. The rental yield of the category hovered around the 5.1 per cent mark. Rental value for the four-bed category stayed stable in August at Dh304,000, with the rental yield recorded at five per cent.-TradeArabia News Service
Dubai rents now more affordable, Abu Dhabi soars
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