"As we head into the last quarter of 2016, we see Dubai’s realty sector on a steady path of recovery." With these words from their apartment rentals latest analysis Bayut experts raised the confidence of potential Dubai property investors.
After months of continuous rentals downward movement, experts finally recorded a clear upward trend in October. Although, compared with the third quarter, the average rentals were still slightly decreasing in October (by just about 1 per cent), different Dubai areas recorded a clear trend to rental prices recovery compared to September.
And, of course, analysts have calculated the average rental price for different types of accommodation in Dubai, depending on the type and size of a property. Thus, renting a studio apartment in Dubai now will cost you about AED 56,000 per annum, which is already 8 per cent higher than the average September price; one-bedroom apartments are leased at an average of AED 92,000 pa, which is 2 per cent higher than last month. But the most demanded apartment type, i.e. two bedroom flats are still dropping a negligible 1 per cent: such Dubai apartments can now be rented for AED 143,000 pa, on average. Three beds are marketed at an average price of AED 199,000 pa, while large apartments with four plus bedrooms, still cost tenants the same AED 295,000 and above, depending on the type of property and its location.
As always, we should emphasize that these figures present the average rental values, while actual rentals may vary greatly, depending on the area, the type of the accommodation and its condition, as well as on many other factors.
With regard to the net income from Dubai apartments leasing out, Bayut October findings point out that studios were the most rewarding type of property investments allocation, giving the opportunity to earn up to 7.8 per cent of rental yields. One-bedroom apartments are returning landlords up of 6.6 per cent of a rental return for now, while larger 2 to 3 bedroom apartments provide an average of 6 per cent of rental yields, which is also quite a lot compared to many other global centers.
“Considering the recent project launches, the inclination of developers to market more and more projects to first-time home buyers and genuine end users, and the robustness of UAE’s various economic sectors, it is safe to say that the real estate market is heading towards maturity, one where genuine demand from stakeholders regulates supply,” Bayut report said.