By Andrei Skvarsky.
Apartment rents in Dubai and Abu Dhabi kept edging down in the third quarter of 2016 but rent yields remained stable and the two emirates’ real estate markets on the whole stayed robust, according to Dubai-based real estate portal Bayut.com.
Rents slid by an average of 2 two per cent in Dubai and 4 four per cent in Abu Dhabi quarter-on-quarter. Rent returns averaged 5.5 per cent in Dubai and 7 per cent in Abu Dhabi, Bayut said in a report.
Information in the report suggests that the rent decreases, although they have been going on a few months, do not represent any systemic problem.
On the other hand, there was “good news” for investors as apartment prices in Abu Dhabi went up by 2.2 per cent in the third quarter.
“Despite regional instabilities, the property market of Abu Dhabi managed to ward off all turbulence and stood strong enough to be a buy-to-let haven with rental yields averaging at 7% and going as high as 8% in certain bed categories,” Bayut said.
In Dubai, apartment prices declined during the third quarter but at a slower pace than before – by 3.8 per cent.
The third-quarter highlight of the United Arab Emirates’ real estate sector was the annual Cityscape Global exhibition in Dubai. The event “not only saw leading developers announce key real estate projects, it also helped rejuvenate the market”, Bayut said.
“Considering the host of project launches and persistent interest of local and real estate developers, it is safe to say the UAE realty sector is headed in the right direction and better times are around the corner,” it said.