Tale of two cities as average Abu Dhabi rent prices rise 3% to AED 130,000 a year, according to Bayut.com data
Dubai rents slumped by 5% in August compared to the previous month, while average prices in Abu Dhabi rose by 3%, according to Bayut.com data.
The average rent for a studio apartment in Dubai fell by 5% to AED 54,000 in August 2016, the property website said, although this category still has the highest yields, at 7.6%, compared with the average of 5.6%.
Rents for Dubai one-bed units rose by 1% month-on-month, while two-bed prices fell by 2% in August, and three-bed prices were down by 4%.
But the UAE market is a tale of two cities, the Bayut.com data show, with average apartment rental prices in Abu Dhabi increasing by 3% in August, compared with July 2016, to AED 130,000. Apartment yields are also stronger in the UAE capital, averaging at 6.6%.
“Dubai remains head and shoulders above its peers for being a truly unique real estate market that is as advanced as some of the most sought-after investment destinations, and in most cases, much more rewarding,” Bayut.com said.
“On the other hand, Abu Dhabi is warming up for a development spree in the coming years that is set to boost its status as a key regional and international realty hub further.”