For investors it still makes sense to invest in Dubai’s luxury properties, with the city recording the second-highest increase in rental value gains for its high-end units after Tokyo for 2014.
Over a 12 month period ending December last, rentals were up by an average 8.1%, according to a Knight Frank, which also found that Tokyo’s gains were around 11.1%.
“Outside [of] the oil industry tenant demand has proved robust,” Kate Everett-Allen, partner for Residential Research at Knight Frank, told Gulf News.
Interestingly, the Knight Frank report also indicates that the bulk of the 8.1 % increase in Dubai took place during the first six months, while the second half was relatively subdued.
By the looks of it, rentals for luxury property in Dubai seems impervious to any downward pressure. For that matter, the city’s tenants would say such is the case with all of Dubai’s rental market — high and low.
“A luxury villa on the Palm can fetch upwards of AED1.2 million per annum [in rent],” said Luke Hexter of Luxhabitat. “We have seen rents at Dubai Marina up by roughly 10% since last year, while on the Palm [they] have stayed more or less stable.
“Luxury two-bedroom apartments on the Palm can fetch upwards of AED350,000 annually, while two-bed [apartments] in Dubai Marina would be AED250,000 yearly.”