By Andrei Skvarsky.
Apartment rents in Dubai and Abu Dhabi have fallen over the past year, according to the Bayut.com real estate portal.
In a report for the first half of 2016, the Dubai-based portal said rents had on average gone down by six per cent in Dubai and by three per cent in Abu Dhabi year on year.
But homeowners were not seriously affected by the decline as rent yields “remained at attractive levels” in both emirates in the first six months of this year, averaging six per cent in Dubai and seven per cent in Abu Dhabi, Bayut said.
At the same time, rents for “luxurious and spacious 4-bed units” were on average two per cent higher in the second than in the first quarter of 2016. There was considerable demand for this category of accommodation, according to the report.
Regional security concerns and political issues such as Brexit “have ushered in an era of uncertainty that is making investors and home buyers delay their spending decisions in some cases, resulting in the marginal loss of pace in vibrant real estate markets like the UAE”, the report said.
However, Bayut credited the United Arab Emirates government with a commitment to job creation, environmental improvements, boosting tourism and building out the infrastructure for the planned Expo 2020 world exhibition.
This helps to attract human capital that “is in turn keeping demand for quality and affordable real estate options on the rise”, Bayut said.