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Dubai’s official rent index, which is now updated annually instead of three times a year, as it used to be before, has been updated for 2017. And by 2018 it is going to be upgraded with additional "Star Rating", which Dubai Land Department will assign to all the buildings in the city after a large-scale field study of residential and non-residential propertied in the emirate.
According to the latest rent index update, such areas as Dubailand gained the upper hand as the industry leader. Rents in Dubailand’s residential community of Arjan increased by the average of 25-30 per cent pa, and now the cheapest accommodation here can be rented for USD 17,698 (AED 65,000), whereas a year ago, this was the maximum annual rent here, and for a larger apartment.
In the meantime rents in Business Bay, International City and Discovery Gardens remained almost unchanged over a year, and currently stand between USD 12,252 and USD 38,118 pa. The price depends on the area, the size of apartment and other parameters, which, actually, are about to be reflected in the "Star Rating"; being developed by DLD to help homeowners make the most of their rental property in Dubai.
Anyway, even without any star ratings, these areas now offer one of the highest rental yields in Dubai. According to Reidin-GCP, renting out an apartment in International City can get you up to 9.65 per cent of annual yields, while a property in Discovery Gardens offers a fairly robust 9.2 per cent of rental yields.
However, when considering to make a fortune on renting out properties in the mentioned areas, one should also take into account other opinions. Thus, according to the Core Savills forecast, rents in Dubai’s peripheral areas could easily decline by 4 percent this year, driven by handover of about 20,000 new housing units in 2017.
