Dubai, Abu Dhabi rents see ‘marginal growth’ in May
Apartment rent prices see small increases compared to the previous month, says Bayut.com report
Apartment rent prices in Abu Dhabi and Dubai saw small increases in May, with the overall property market “faring well”, according to a report by Bayut.com.
Average apartment rents in Dubai grew 1.57% compared with the previous month, while average rental yields remained at 5.3%.
In Abu Dhabi, rents rose by 0.73% in May, reversing the drop seen in April. The average rent in the UAE capital now stands at AED 137,000, while overall yields were recorded at 7.2%.
“Apartment rental yields in Abu Dhabi returned stronger values than the returns in Dubai, showcasing the strength of the UAE capital’s market,” the Bayut.com report found.
“Dubai’s suburbs continue to attract residents and investors thanks to their affordable prices and rents, as well as rental growth and decent yields.”
In Dubai, the average rent for studio apartments went up to AED 57,000 in May from the AED 56,000 recorded in April, a growth of 2%. Average one-bedroom apartment rents rose by 1% to AED 95,000, while three-bedroom apartments were rented out for an average of AED 206,000, a 1% growth.
“As far as real estate activity is concerned, the realty landscape of both Abu Dhabi and Dubai is faring well. Projects launched in the recent months are now being reported to have completely sold out, depicting the interest investors – both domestic and international – have in the two markets,” the Bayut.com report found.
“The UAE government’s commitment to infrastructure spending in both emirates will continue to boost morale in the two markets and help push them forward. The nation’s successful negotiation of the oil price crisis has helped buoy its realty markets, which will continue to see increasing investments in the hospitality and entertainment sectors as we head closer to Expo 2020.”
