By Andrei Skvarsky.
Last year’s decline in apartment rents in Dubai and Abu Dhabi has overall continued into 2017, though there were minor rises in January and February, according to Dubai-based real estate portal and private company Bayut.com, which argues that the real estate markets in both cities are by and large doing well.
In February, rents in Dubai edged up by 0.87 per cent but those in Abu Dhabi dropped by 8 per cent. Rent yields were still relatively high at 6 per cent in Dubai and at 6.1 per cent in Abu Dhabi, Bayut, which is a private company said in a monthly report.
In January, rents went down by 3 per cent in Dubai but went up by 3 per cent in Abu Dhabi. The yields were 5.72 per cent in the former and 6.4 per cent in the latter.
In 2016, rents in both cities of the United Arab Emirates fell by 6 per cent while the average price for an apartment in Dubai sank by 11 per cent to 2.29m dinars ($623,500) and that in Abu Dhabi slid by 1 per cent.
Bayut argues that, considering global economic headwinds such as the cheap oil, the performance of the real estate markets in both Dubai and Abu Dhabi has been “satisfactory”.
“While many regional realty markets remain in a nosedive, Dubai and Abu Dhabi have held their positions well,” the report says. “The adjustments in prices are a natural phenomenon in markets that are directed by demand and supply and should not be a cause for concern.”
“The massive infrastructure expenditure planned in relation to the Expo 2020 is yet to gather momentum and push real estate activity into top gear,” Bayut says.