According to the latest Knight Frank survey on cities with the highest rental gains in the 12 months to September last, Dubai was comfortably placed at the top with a 12.4% increase, and ahead of second-placed Tokyo which had a 9.8% gain.
Dubai’s ranking came about despite the fact that rental averages for premium properties remained flat between June to September. It is the second time in as many years that the city has retained the top spot. In Knight Frank’s analysis, ‘prime property’ corresponds to the top 5% of the housing market in each city.
“As against the 3 or 3.5 per cent on a premium residential investment in New York or London, and 4 per cent in Singapore, Dubai’s rental yields remain locked at 7-8 per cent,” said Hussain Sajwani, chairman of Damac Group.
“If one goes by sales values, even after the spike in the last two years, Dubai’s property sales values are one-tenth of London and New York, one-third of Singapore, and 30 per cent lower than in Beirut or Mumbai.