Bayut: Marginal rent growth in Abu Dhabi and Dubai
The UAE’s real estate market maintained stability in May 2016 with marginal rent increases in Abu Dhabi and Dubai, according to Bayut
The UAE’s real estate market maintained stability in May 2016 with marginal rent increases in Abu Dhabi and Dubai, according to research from Bayut.
The property portal’s UAE Market Report May 2016 found that despite some fluctuations, the Emirates’ real estate sector posted positive figures overall.
The report also noted that Dubai’s suburbs continued to attract residents and investors thanks to affordable prices and rents, as well as rental growth and “decent yields”. Apartment rental yields in Abu Dhabi, meanwhile, returned to stronger values than the returns in Dubai.
In comments released following the publication of the report, Bayut explained: “As far as real estate activity is concerned, the realty landscape of both Abu Dhabi and Dubai is faring well. Projects launched in the recent months are now being reported to have completely sold out, depicting the interest investors – both domestic and international – have in the two markets.”
Bayut researchers found that, compared to April 2016, average apartment rents in Dubai grew 1.57% in May 2016, while average rental yields remained at 5.3%. Average apartment rents in Abu Dhabi, which lost 0.72% of their value in April 2016, registered 0.73% growth in May, while average rental yields were recorded at 7.2%.
Based on location searches from Bayut’s website in May 2016, the five most popular areas for renting apartments in Dubai were: Dubai Marina, Jumeirah Lakes Towers (JLT), Bur Dubai, Downtown Dubai, and Dubai Silicon Oasis (DSO).
The most popular rental locations in Abu Dhabi were: Al Reem Island, Al Raha Beach, Al Muroor, Khalifa City A, and Al Khalidiyah.
“The UAE government’s commitment to infrastructure spending in both emirates will continue to boost morale in the two markets and help push them forward,” the Bayut report stated.
“The nation’s successful negotiation of the oil price crisis has helped buoy its realty markets, which will continue to see increasing investments in the hospitality and entertainment sectors as we head closer to Expo 2016,” it added.