Read more to find out where experts predict up to 9.2 per cent of rental income per year, and how much the average Dubai rentals have decreased.
Despite decrease in rental rates and a decline in overall property market activity, some Dubai areas and communities still offer decent rental yields to investors.
"With prices flattening, the capital appreciation at this point might seem less, but we expect long-term gains leading up to 2020," Luxhabitat said in its latest report, adding that average rental yields have decreased by a minimum of 0.20 per cent, but landlords can still benefit from an average 6.23 per cent rental yield year-on-year.
But the average doesn’t always depict the real state of rental market in different Dubai locations, where rents can differ greatly depending on a number of circumstances. But there are certainly the Top 10 Dubai communities offering highest rental yields.
Dubai Silicon Oasis comes second with prices having decreased by 3.6 per cent in the past 6 months, but rental yields still holding strong of 8.7 per cent return year-on-year.
International City, most searched for by working class, saw property prices decrease by 2.6 per cent, but nevertheless, it still offers rental yields of 8.6 per cent, which helped this area occupy the third place in the rating.
According to Luxhabitat, this list also includes such localities as
And what about other experts? What do they say? A recent research made by Chestertons Mena consultancy revealed that apartment rental rates in Dubai declined by 4 per cent quarter-on-quarter in Q2 2018. And July investigation made by property portal Bayut found that Dubai rental rates had declined by 2 to 9 per cent over a year, while an April report from Cavendish Maxwell recorded a five per cent year-on-year decrease in rental rates.
But what is the real picture? We can guess that by asking tenants themselves. According to a recent survey by yallacompare, over 1 in 5 UAE residents were paying more in rent, for the same property, in second-quarter as compared to same quarter last year. However, 20.4 per cent of UAE residents are currently paying less than they used to a year ago. Over 40 per cent are paying the same rent as last year, while 38.6 per cent are actually paying more.
If you want to rent, lease or buy to let an apartment, villa or townhouse in any of Dubai areas, please, don’t hesitate to contacts IMEX Real Estate on:
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