Dubai’s Real Estate Market Yields the Highest Returns at an average of 9.5% per annumadmin
At 9.5%, Dubai Silicon Oasis (DSO) apartments offer the best gross rental returns, according to the latest Property Finder Trends report. While the average yield in global property hotspots like New York (2.9%), London (2.7%), Singapore (2.5%) and Hong Kong (2.4%), hover below the 5% benchmark, Dubai properties go above and beyond, routinely offering over 7% gross returns on average.
What are rental yields? They are one of the most important considerations mid to long-term investors take into account. It is the rental income (i.e. the money paid by the tenant to the landlord) divided by the purchase price of the property.
While in the first half of 2019, there were high gross rental yields offered by new communities like Meydan (9.3%) and Damac Hills (8.9%), neither held a candle to DSO. DSO emerged as the most lucrative. Meanwhile, investor favourites like International City and Dubai Sports City (both at 8.4%), as well as International Media Production City and Arjan (both at 7.6%) continued offering high returns for their buyers.
In the villas and town-house communities, Town Square stood at the top with gross returns at 7.8% in H1 2019. Following this was The Springs (6.6%), Reem – Mira (6.4%), Mudon (6.3%), and Jumeirah Village Circle (6.2%). Also, the luxury villa communities’ range from 2% to 4%. These communities include Emirates Hills, Jumeirah Islands, Mohammed Bin Rashid City, Palm Jumeirah Garden Homes, and Palm Jumeirah Signature Villas.
Evidently, as Lynnette Abad, the director of data and research at Property Finder, says, “ 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.”
Affordable properties such as the ones at Al Reef offer high rental yields for apartments and villas/townhouses at 8.5% and 6.7%, respectively. Meanwhile, investors also favour the apartments in Al Ghadeer (8.3%) and Al Raha Beach (7.2%). Besides, popular sources for rental incomes are the villas and townhouses in Al Raha Gardens (5.7%) and Golf Gardens (5.5%).
Ajman’s Emirates City’s apartments offer the highest yields, giving the UAE a gross rental yield of 11%! Apartment buyers also got amazing rental returns from Al Hamara Village in Ras Al Khaimah (9%) and Ajman Downtown (8%). In terms of villas, the top three communities are Ajman’s Al Mwaihat (6%), Al Hamra Village in RAK (5.2%), and Al Zahraa in Ajman (4.9%).
With so much information, you may not know where to begin! After all, you’ve come this far, not investing is no longer an option. That’s where Golden Bricks comes in! Our incredible experience with the Dubai realty market means we have the expertise necessary to guide you. With our help, you make the best, most lucrative deals and get those gorgeous rental yields in no time!