The maximum rental income in this area of Dubai exceeds rental income in such global centres as London and Sydney. Read more to find, which is it.
Despite the statistical decline in the average rental price in Dubai (although Dubai rental market is too volatile to deduce a true average value), real estate remains the most preferred investment asset in Dubai. Those who expect to get the maximum ROI should consider investing in property units outside the city center or in new developing residential communities, experts say.
A new research conducted referring rents and homeowners' income across the emirate has revealed that
This is much higher than the possible rental yields in London, where landlords usually get no more than 3.4% from renting their properties out, or in Tokyo and Sydney, where rental income averages 2.7% and 4% respectively.
According to the Propertyfinder Group, rental yields for apartments in the JVT remain rather high even despite some rents decline recorded in the area last year.
And overall average rental yields in Dubai also remain relatively stable, and changes in this indicator in most areas of the emirate did not exceed 1%.
According to Lukman Hajje, chief commercial officer of Propertyfinder Group, rental yields are determined by a number of factors.
“Typically, smaller properties produce better rental yields than larger ones,” he said. “Apartments are better than villas, and studios are better than larger apartments, for example.”
“But also consider location. Newer, emerging communities offer better rental yields than more established communities. Newer cities offer higher rental yields than established cities,” he said.
According to the latest semi-annual study of investor preferences conducted by IP Global for the international analytical portal YouGov, real estate in Dubai is considered one of the most stable and profitable investment assets.
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