Dubai real estate remains one of the best rental yields in the world, especially in new communities giving better returns than other major cities in the globe.
According to Property Finder’s latest data,communities such as Meydan and Damac Hills offer gross rental yields of 9.3 per cent and 8.9 per cent, respectively. Dubai Silicon Oasis apartments, provided the highest gross rental returns in the emirate at more than 9.3 per cent in the first half of 2019.
The study shows that average rental returns in Dubai are better than big cities despite a decline in prices and sales in the past couple of years.
Director of data and research at Property Finder, Lynnette Abad
said, “Despite a sustained contraction in prices, Dubai still holds its own as an investment hotspot with attractive yields and new legislative initiatives to further entice investors and companies.”
Property Finder revealed that investors’ favourite areas continue to offer attractive returns for buyers. These areas are International City (8.4 per cent), Dubai Sports City (8.4 per cent), International Media Production City and Arjan (both at 7.6 per cent).
In Abu Dhabi and the Northern Emirates, the affordable community of Al Reef is ahead in terms of offering the capital’s gross rental yields for both apartments and villas/townhouses at 8.5 per cent and 6.7 per cent, respectively. Apartments in Al Ghadeer (8.3 per cent) and Al Raha Beach (7.2 per cent) also find favour with investors, while villas and townhouses in Al Raha Gardens (5.7 per cent) and Golf Gardens (5.5 per cent) are also popular with those looking to make a rental income.
Luxury communities such as Saadiyat Island and Yas Island in Abu Dhabi are more focused at end-users and offer relatively lower rental yields in the UAE capital.