By Andrei Skvarsky.
After “months of continued downward movement”, apartment prices and rents in Dubai and Abu Dhabi began to show positive dynamics by October from an investor’s point of view, with the price decline slowing down and rents edging up, property portal Bayut.com said.
October’s apartment prices in Dubai and Abu Dhabi were 1.2 per cent and 0.7 per cent lower respectively than the third-quarter averages, the Dubai-based portal, which is a private company, said in a report.
Rents on average posted month-on-month rises of one per cent in both emirates.
In Dubai, rents charged in October averaged 124,000 Emirati dirhams ($33,500 at that month’s average market exchange rate) in per-annum terms and rent yields were one percentage point higher than in September, reaching 5.6 per cent. In Abu Dhabi, the average rent was 130,000 dirhams ($35,100) per annum, and the average yield stayed at the third-quarter level of seven per cent, Bayut said.
Studio apartments were doing best rent-wise in both emirates in October.
In Dubai, studio rents averaged 56,000 dirhams ($15,100) in per-annum terms, being eight per cent up on September, and provided average yields of 7.8 per cent. In Abu Dhabi, the average rent was 58,000 dirhams ($15,700) or nine per cent higher than in September, and the average yield was eight per cent, according to Bayut.
Bayut attributed this year’s earlier decline in the two emirates’ real estate sectors to “global issues such as Brexit and a liquidity crunch owing to low oil prices”.