Dubai has always been a favorite destination for real estate investment due to its robust economy and increased demand for leased properties. Rental yield is the most important aspect considered by investors while deciding on the location of their property as it represents the rate of return on investment achieved through renting out a property. So, what rental yield does Dubai have?
Survey on Rental Yield in Dubai
The returns from renting out residential properties in Dubai have varied over time because of such factors as the state of the country’s economy, renter preferences and pricing trends. Normally however, Dubai rental yields have been quite high compared to some other major world cities and averaged from 5% – 7%.
Factors Influencing Rental Yields in Dubai
Location, quality, amenities and market trends are among several factors that can affect rental yields in a particular area like Dubai. As a rule, desirable locations like Downtown Dubai or Jumeirah Beach Residence usually attract more attention than less attractive places around.
Emerging Trends In Rental Yields In Dubai
In recent years though, lower rentals have begun to be charged because of an oversupply situation that occurred in this market making landlords compete even harder amongst themselves. Nonetheless, some parts within this emirate still record high rental yields primarily because they are under significant demand by expatriates and tourists.
Where To Invest For Highest Rental Yields In Dubai
Some good areas with high rental yields include; Deira Creek Area, Al Barsha South First Street Villas and The Greens Community Apartments for Sale etc., Jumeirah Lake Towers & Jebel Ali Gardens; these neighborhoods appeal mostly also because they present an opportunity closer to amenities such as shopping malls entertainment places where people work creating potential income source through rent collection.
Renting Tips To Boost Yielding Capacity In This Region
Majority of investors would want to maximize their incomes by increasing the number of people who are renting their properties. For example, if you would like to increase your rental income in Dubai, consider these factors: know the current demand trends for rentals, maintain your houses well so that they are always clean and well presented while also paying attention to details such as how much is enough rent versus renovations costs and whether tenants can be retained longer.
Dubai still remains a profitable destination for property investors despite some changes in rental yields witnessed lately. By knowing what influences rental yield, investing in preferred areas and adopting strategies that will lead to higher rents; an individual get impressive returns on investment from his/her assets located within this emirate.
