Abu Dhabi’s Rental Returns Maintain Traction

Abu Dhabi’s Rental Returns Maintain Traction

Dubai and Abu Dhabi remain a safe place for real estate rental investors, despite the slowdown in prices, a recent report revealed, according to Trade Arabia.

Several factors have allowed the two emirates to maintain thriving real estate sectors, such as the diverse economy and secure investment, as well as the upcoming Expo 2020, according to the report from Bayut.com, a UAE property portal.

Investors remained interested in the market amid the average yields in July, which recorded 5.6% in Dubai and 7% in Abu Dhabi. Meanwhile, the total investment in Dubai’s real estate sector recorded AED 57 billion in the first half of 2016.

Sharjah also recorded investments worth AED 12.1 billion in the first half of the year, according to Arabian Business.

The report added that Abu Dhabi has continued to attract investors, holding a high rental return on investment and a promise of capital value.

Dubai’s real estate market witnessed strong rental yields, as high as 6.5%, in apartment categories. However, apartments that were considered affordable recorded a total downward adjustment in July of 2%.

Studio apartment rentals remained steady at AED 57,000 compared to the average studio rents in H1 2016.

Two-bedroom apartments recorded average rates of AED 145,000 in July after a downward adjustment of 3%, while average rent for three-bedroom apartments remained steady compared to H1 2016, and the rental yields were 5.4% in July 2016.

On the other hand, Abu Dhabi’s average apartment rent for the month of July recorded AED 126,000 per annum, a 6% downward adjustment from the average rent recorded last year. However, the average rental return remained at an attractive 7% in July 2016.

The rental of a studio apartment in Abu Dhabi decreased by 5% to AED 56,000 in comparison to last year, while rentals of one-bedroom apartments adjusted downwards by 6% to reach AED 91,000.

Apartments’ rental in Abu Dhabi of two-bedroom apartments dropped by 4% to AED 129,000, while three-bedrooms apartments dropped by 5% to AED 172,000. The average rent of apartments with four or more bedrooms decreased by 4% to AED 247,000 in July 2016.

Despite the fall in rental values, the yields helped compensate, recording 7% from units in the capital. Studio apartments topped the list of yields, recording 7.4% in July 2016, while one-bed and two-bedroom apartments returned yields of 7.3% and 6.9% respectively.

The average rental yield of three-bedroom apartments surged to 6.3%, and four-bedroom apartments registered a rental return of 5.5% in the same period.

Fatma Khaled 379 Posts

An aspiring journalist always seeking to deliver the best of everyday's news. I am a very enthusiastic Egyptian who is committed to journalism and what I could give as a journalist/ writer through reporting on business and political news.

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