Dubai properties are continuing to offer rental yields of more than 7% on average, according to a report by Property Finder. Despite sales prices and rents softening in the first half of 2019, UAE properties continued to provide high rental yields. These rental yields are more impressive than many other major cities.
High Rental Yields Offered By Dubai Properties
Properties in Dubai consistently offer rental yields that are much higher than other major cities. Whereas Dubai offers yields of more than 7% on average, New York only offers 2.9% and London only offers 2.7%. Even Singapore and Hong Kong fail to meet the yields seen in Dubai, with the cities offering 2.5% and 2.4% respectively.
Lynnette Abad, Director of Data and Research at Property Finder, explained that Dubai is still holding its own as an investment hotspot with attractive yields. This is in spite of a continued contraction of property prices.
Nick Witty of Chesterton Mena stated: “Since the change in UAE regulations regarding short-term lettings, we have seen a rapid increase in popularity with single and portfolio landlords alike. With increasing demand for short-term lets and holiday homes, particularly in the run up to Expo 2020, these types of lets are achieving between 25 per cent and 40 per cent higher returns when compared with traditional longer-term leases.”
The highest gross rental returns in Dubai can be achieved with Dubai Silicon Oasis apartments, standing at 9.5% in the first half of 2019. Meydan and Damac Hills also offered impressive gross rental yields of 9.3% and 8.9%. Simply, new initiatives are bringing investors and companies to Dubai.