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UAE: Rents fall in Abu Dhabi and Dubai in H1 2016

Average rents in Abu Dhabi and Dubai fell year on year during H1 2016, although yields remained attractive in both emirates, according Bayut

Average apartment rents in Abu Dhabi and Dubai saw year-on-year falls in H1 2016, according to property portal, Bayut.
Average apartment rents in Abu Dhabi and Dubai saw year-on-year falls in H1 2016, according to property portal, Bayut.

Average rents in Abu Dhabi and Dubai fell year on year during H1 2016, according to research from Bayut.

The property portal noted that despite this downwards adjustment, homeowners did not feel much heat as yields remained at attractive levels in both emirates.

Rental apartments in Dubai offered owners an average yield of 6% in H1 2016, while those in Abu Dhabi returned 7% during the same period.

Typical apartment rents in Dubai saw a year-on-year drop of 6%, with average annual rents calculated at $35,670 (AED131,000). IN Abu Dhabi, apartment rents saw a 3% year-on-year drop in H1 2016, with average rents hovering at $36,760 (AED135,000).

Commenting on the findings, the authors of the Bayut report said: “With the market moving into the second half of the year, global developments continue to weigh on the world economy.

“Regional security and political issues like Brexit have ushered in an era of uncertainty that is making investors and home buyers delay their spending decisions in some cases, resulting in the marginal loss of pace in vibrant real estate markets like the UAE.”

However, the property portal is confident that upcoming events and planned infrastructure spending will drive growth within the UAE’s real estate sector in the longer term.

“The UAE government’s commitment to job creation, ecological improvement, boosting the tourism sector, and development of Expo 2020-related infrastructure remain continued drivers for the economy, helping attract human capital that is in turn keeping demand for quality and affordable real estate options on the rise,” the report added.

“Dubai and Abu Dhabi continue to be among the few rewarding realty markets in the world, and will continue to do so in the near and distant future,” Bayut concluded.

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