By Andrei Skvarsky.
Dubai-based real estate portal Bayut.com says statistics prove that the United Arab Emirates’ real estate market “continues to inspire trust in investors”.
Dubai’s property sector saw an increase in investment in the first half of 2016 with the total amount crossing the 57bn-dirham ($15.52bn) mark, Bayut said in a report for that period.
“Both Dubai and Abu Dhabi continue to be safe havens for global realty investors and the increasing prospects of Sharjah’s real estate sector provide yet another avenue for international wealth in a quickly developing market,” Bayut said. It said 12.1bn dirhams ($3.29bn) had been invested in Sharjah’s real estate sector in the first six months of the year.
Bayut predicted that the Expo 2020 world exhibition, to be held in Dubai, would keep the emirate’s real estate and allied sectors “thriving”.
In July, rental returns in Dubai averaged 5.6 per cent but reached 6.5 per cent in some apartment categories, the report said.
The average annual rent for studio apartments stood at 57,000 dirhams ($15,520) in July, and that for the largest apartments, those of four or more bedrooms, at 304,000 dirhams ($82,770), which was six and two per cent down year-on-year respectively.
Rents in Abu Dhabi were lower than those in Dubai in all apartment categories but the returns were higher. For instance, the average rent in the four plus-bedroom category was 247,000 dirhams ($67,250) but the yields averaged 5.5 per cent compared with four per cent in the same class in Dubai.