The value of residential apartments in Dubai experienced its largest surge in nearly a decade this August, Invest-Gate reports.

The flourishing housing sector in the Emirati city, driven by large single-family homes thus far, has led to a rise in apartment prices, accounting for approximately 85% of the market supply in the emirate.

According to the real estate consultancy group, CBRE, apartment prices rose by an average of 20% in August on a year-on-year basis, reaching their highest levels since November 2014. These gains surpassed the increases in villa prices, which amounted to 17.3%.

ValuStrat, a real estate valuation and research company that bases its data on a fixed basket of properties representing the market, reported a 10% average increase in apartment prices year-to-date until August. The highest annual gains were observed in Palm Jumeirah, where prices rose by a fifth.

The rental yield for apartments in Dubai stands at approximately 7.34%, according to CBRE. In comparison, the average yield in London is 4.18%, while in prime central London, it is even lower at 3.6%.

The average annual rent for apartments in Dubai is AED 106,674, whereas for villas, it is AED 322,573, as reported by CBRE.