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One more Dubai consultancy reports that more and more investors, as well as end-buyers are willing to buy property in Dubai. Chesterton MENA report, published recently, revealed that during the first three months of 2016 the number of real estate transactions increased by 11% compared with the previous quarter and reached USD 7.3 billion.
Property owners’ rental income in the sector increased by 7.5% even though the prices on average stayed plain. The most popular locations in this sense are still affordable housing areas, thus average rental yields for apartments in Dubai, according to Chesterton, currently stand at 7.5%, and for the villas it is about 4.5%.
The greatest increase in rental yields in the first quarter was recorded for small studios in central areas — you can now get an average of 8.5% yields when leasing them. And for villas the largest yields investors can expect to get are recorded in The Springs — up to 4.5% in the first quarter, although, however, there are enough villa properties on the Palm Jumeirah offering up to 8 or even 10% of rental yields, but it is, of course, far from the average.
In the residential sector the stock currently includes 461,000 units, and the average sales price per square foot here stands at AED 1,221 ($332), according to Chesterton’s data.
Declan McNaughton, managing director UAE at The Springs, said: “Overall, market yields have retained some degree of attraction as we saw residential prices drop in the first three months of the year, with apartments proving to be the most successful option in terms of yield.”
“And it is the secondary locations that are once again offering the highest yield, ranging from 7.7 percent at Dubai Silicon Oasis to 9.5 percent and 9.6 percent respectively at Discovery Gardens and International City,” he added.
