By Andrei Skvarsky.
UAE property portal Bayut.com says the real estate markets of Dubai and Abu Dhabi still showed a “consistently stable” return on investment (ROI), 4.9 per cent on average, in the first half of 2017 despite an overall, albeit minor, decline in rents and prices in both cities.
Bayut says it expects both rents and prices in Dubai and Abu Dhabi to go up in the second half of the year because of “continued investment in infrastructure, diversification of the economy”, and Dubai’s planned hosting of world exposition Expo 2020.
In Dubai, the UAE’s largest and most populous city, rents dropped by an average of 10.4 per cent in the first half of 2017, although those for studio apartments dipped by a mere 0.1 per cent, Bayut said in a report. Rents for three-bedroom villas fell by 7.6 per cent.
Prices in Dubai went down by 7 per cent during the first six months of this year.
Real estate investment in the city yielded a return of 4.7 per cent in that period compared with 4.9 per cent in the second half of 2016, according to the Dubai-based property portal.
In UAE capital Abu Dhabi, the country’s second-largest and second-most populous city, rents dwindled by an average of 6.3 per cent, and even fell by 16.2 per cent in one of its districts. The average studio rent slid down by 4.3 per cent.
Prices in Abu Dhabi on average underwent decreases of “lower single digit percentages”, the report said. At the same time, studio prices grew by 2.2 per cent.
Property investment brought an average return of 5 per cent in the UAE capital.
In 2016, rents and prices both in Dubai and in Abu Dhabi went down on the whole.