Dubai property rents increase 5% y-o-y

Dubai property rents increase 5% y-o-y

Buy-to-let investors with assets in Dubai have enjoyed rental return increases of 5% this year, new research suggests.

Summary:

  • Rents in Dubai have increased by 5% over the past year
  • Demand for property in Dubai is set to continue unabated
  • Apartments in close vicinity to major new public transport improvements are in high demand currently

Buy-to-let property investments in Dubai have seen associated rents rise by 5% over the past 12 months.

New research from property consultancy Cluttons showed that buy-to-let returns look set to continue to rise into 2015 with supply predicted to fall well short of demand over the medium to long term.

In the real estate consultancy’s Dubai Winter 2014 Residential Market Outlook report Cluttons International Research and Business Development Manager Faisal Durrani said: “In particular, the leisure, hospitality, aviation, finance, banking and real estate sectors have seen rapid expansion, as evidenced by the level of housing requirements from these sectors. In the short to medium term, we do not anticipate a slowdown in the rate of job creation.”

Cluttons also highlighted that buying off-plan could provide property investors with the best chance of returns over the next year.

Steve Morgan, Chief Executive Officer of Cluttons Middle East, explained that although freehold transactions have started to slow, the off-plan residential sales market is buoyant and it continues to attract both regional and international investors.

The recent widespread improvements to Dubai’s infrastructure are also assuring property investors of the long-term potential for both rental and capital growth.

Dubai Marina continues to be very popular with expats and there has already been a significant increase in demand for property in close proximity to the Marina’s new Metro stations, while a similar affect around the new the Dubai Tram stations is also expected.

Earlier this year, fellow property consultancy Knight Frank revealed that property investors with assets in Dubai are also enjoying some of the highest capital gains in the world.

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