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Property investors worldwide have poured in a generous AED 57 billion in emirate’s real estate sector during the first six months of 2016, so naturally everyone was curious about the performance of Dubai’s realty in the following month (July). Property analysts at Bayut observed some interesting trends in UAE’s smartest portal’s database and have developed the following report.
In July 2016, Dubai’s real estate market remained strong with rental yields going as high as 6.5% in select apartment categories. Overall, however, apartment rents were seen becoming more and more affordable with a total downward adjustment in July of 2%. Average yield across all bed categories was recorded at 5.6%.
Per Bayut’s findings, the average rent for studio apartments in Dubai remained stable at AED 57,000 compared to the average studio rents in H1 2016. However, the average came down 6% in a year-on-year analysis with July 2015.
The units returned an average rental yield of 6.3% in July 2016, with the average rent for 1-bed units recorded at AED 92,000 and rental yield hovering close to the 6.5% mark. The average rent was 7% less in July 2016 than the average rent in H1 2016.
Two-bed apartments fetched owners AED 145,000 in July after a downward adjustment of 3%. However, rental yield remained attractive at 6%. Commanding AED 206,000, average rent of 3-bed units remained stable when compared with H1 2016 values, and the rental yield was 5.4% in July 2016.
The largest apartments, the 4+ bed category, returned an average annual rent of AED 304,000 in July 2016, exhibiting a 2% drop in value from H1 2016. Average yield for these units was recorded at 4%.
Top localities for renting apartments in Dubai (July 2016)
- Dubai Marina
- Jumeirah Lakes Towers (JLT)
- Downtown Dubai
- Bur Dubai
- Dubai Silicon Oasis
Top localities for buying apartments in Dubai (July 2016)
- Dubai Marina
- Jumeirah Lakes Towers (JLT)
- Downtown Dubai
- Palm Jumeirah
- Business Bay
