The real estate market in Dubai remains healthy and returns are still high.
- Strong tenant demand for Dubai property leads to 7.8% yields
- Demand for rental properties remains consistent due to a high population and promising job market
- Forecasted United Arab Emirates population growth of 20% by 2030 will feed property market momentum
Dubai remains an attractive prospect for investors with prime properties offering yields of 7.8%, rising from 7.2% in January last year.
The Dubai Land Department stated the property market was “going strong and dynamics are favourable” as rents hold steady and developers posted increasingly higher profits.
Diaa Noufal, Associate Partner at Knight Frank, said: “With price falls continuing to outpace rental value declines, initial yields are rising. Reaching more than 7% in rental yields in the mainstream property segment, Dubai still stands tall among real estate capitals in the world for investor seeking income generating properties.”
The confidence in the market health can be explained by the high population and strong job prospects found within Dubai, causing rental demand to be consistently high and growth becomes more sustainable.
With the residential market offering rental yields at 7.8%, Dubai offers higher returns than that of London, where average yields can be as low as 3%.
Property portal Bayut said the high attendance level at the Cityscape Global 2015 event and the £30 billion invested into Dubai property in the first nine months of 2015 was a strong message that the market is strong and demand was increasing.
Demand in Dubai property is set to gather momentum and maintain impressive returns for investors at a steady pace due to a forecasted 20% population growth in the UAE by 2030.