UAE real estate continues to provide some of the highest returns in the world
UAE real estate continues to provide some of the highest returns in the world despite the downward trend experienced by prices and rents in 2018, reveals the “Property Finder Trends” report.
The up-and-coming community of Arjan topped Dubai’s list with 12.4% gross returns while investor favourite International City improved to 10.1% from an already high 9.2% due to healthy demand from those migrating from other emirates, informs the Research and Data department of Property Finder. These figures are based on active listing data on Property Finder.
- International City offers over 10% gross rental yield due to healthy demand from those migrating from other emirates
- In Abu Dhabi, affordable communities outperform the more expensive ones
Among the villa and townhouse communities, Town Square offered the highest gross returns at 7.2%, followed by Mudon at 6.8% and Reem – Mira at 6.7%.
Rental yield is one of the most important considerations for mid to long-term investors.
Lukman Hajje, Chief Commercial Officer of Property Finder, said: “Typically, smaller properties produce better rental yields than larger ones. Apartments are better than villas, and studios are better than larger apartments, for example.”
“But also consider location. Newer, emerging communities offer higher gross rental yields than more established communities but often have higher vacancy and lower capital growth potential,” Lukman added.
Newer, emerging communities offer higher gross rental yields than more established communities but often have higher vacancy and lower capital growth potentialLukman Hajje, Chief Commercial Officer of Property Finder
In Abu Dhabi, more affordable communities are outperforming the more expensive ones in terms of rental yields.
Al Ghadeer apartments offers the highest gross rental yield of 8.3% in Abu Dhabi, followed by Al Reef at 8% and Al Reem Island at 7.1%.
In terms of villas and townhouses, Al Reef offers the best gross rental yield of 7.2% and Al Raha Gardens at 5.5%.
In the Northern Emirates, apartments in Ajman Downtown offer the highest gross rental yield at 8.5%, Al Hamra Village (RAK) at 8% and Al Marjan Island (RAK) at 7.6%.