The first half of the year is moving behind, and Dubai Land Department has already prepared the actual and true data about real estate price changes in Dubai. In the first six months of 2016 investors put USD 15.52 million in different kinds of real estate units in the emirate.
Given that the averages keep going down in the rental sector, this situation, however, had no effect on the average yields as a whole, which currently stand at about as high as 6.5% in some segments of the rental sector. Generally, Dubai rents have become more affordable with an average annual decrease of 2%.
The average rents for studio apartments remained stable, amounting to about USD 15,500 pa, while one-bedroom apartment rents in Dubai averaged to USD 25,000, with the most popular category of two-bedroom apartments being currently leased for about USD 35,000 pa on average. Spacious three-beds will cost tenants USD 56,000 pa on average. And everything bigger or equal to 4-bedroom apartments is not as actively leased as studios, for an average price for renting a unit in this category stands at USD 83,000 pa.
The average annual rental yields in Dubai reduce in inverse proportion to the number of bedrooms: studios and one bedroom apartments bring an average 6.3 - 6.5% of yields, while two-bedroom apartments can get you about 6% return pa, according to DLD data for July 2016, and 3-bedroom apartments provide nearly 5.4% of yields, and more spacious housing bring about 4% of annual return.
And when ranking Dubai most popular areas to buy and rent real estate, everything is more or less the same as always. In both Top-5 rankings for those categories revealed by DLD we see Dubai Marina, Palm Jumeirah, JLT and Downtown.
Top 5 localities for renting an apartment in Dubai (July 2016)
2. Jumeirah Lakes Towers (JLT)
4. Bur Dubai
5. Dubai Silicon Oasis
Top 5 localities for buying an apartment in Dubai (July 2016)
1. Dubai Marina
3. Downtown Dubai
5. Business Bay