Logo
  • Order call
  • Call management

Property type
No. of bedrooms
Area
Show offers

Dubai real estate investments yields pushed up to 7.5%

01.11.2015
Dubai real estate investments yields pushed up to 7.5%
New report by Phidar Advisory recorded yields expansion in Dubai real estate market.

Phidar Advisory presented its own report on the Dubai real estate market for the year’s third quarter.

According to data collected using House Price Indices, overall apartment sale prices in Dubai were down 3.6%, while apartment rentals have remained almost unchanged, declining by only 0.5%, which has pushed the yields up to 7.5%.

Yields have also risen in the villas segment. Sales prices here fell by 3.4% in the last three months, while rentals were down by 1.5%, which increased this assets type yields up to 4.8%.

Phidar Advisory managing director Jesse Downs agreed with other market participants as for the forecast on the volume of supply in Dubai in the coming years. The whole number of residential developments launched in Dubai is large enough, but “some announced and even launched projects are not viable, so handover is not expected in the stated timeframe,” Downs said.

Thus, the compound annual growth rate (CAGR) at the Dubai’s property market in the next five years is unlikely to exceed 2.8%, while population growth during this period, and the related demand for housing is expected to be up to 5.8%. The demand growth will be mostly associated with the creation of many new jobs in the run-up to Expo 2020, while the peak in demand can be achieved starting from 2018, the report said.

Therefore, the assumption of most local Dubai developers and analysts about the new wave of growth in Dubai house prices in the mid-2016, looks quite realistic.

Latest Availability
SALE
6,800,000
Ref.No: AP1113
3BR Apt
3,003 ft2
2,264 AED/ft2
SALE
8,200,000
Ref.No: AP972
3BR Apt
3,750 ft2
2,187 AED/ft2
SALE
730,000
Ref.No: AP165
Studio Apt
630 ft2
1,159 AED/ft2
Latest property news
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required
Request a call back
SOGA1  SOGA2
Call management
SOGA1  SOGA2
Lease process (Rent out)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.
Real estate search.

Up to 5 days

Real estate search.

Selection of optimal options.

Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Property Selection

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Customer charges:
  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration
Additional services:

Property management

Sales Process
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

None

the management process
Contract of the owner and agency

1 hour

Contract of the owner and agency
Rendering of management services

1 year

Rendering of management services
Reporting

1 day

Reporting
Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Selection of optimal investment options

From 3 days

Selection of optimal investment options
Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Expenses of the investor:
  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration
Additional services:

Property management