Rents for villas in Dubai increased by 71% compared to the year 2011

19.02.2016
Despite the decline in prices in 2015, rental yields from villas lease in Dubai increased to 5,5%: Asteco.

Owning a villa in Dubai is still profitable, despite the fact that such expensive real estate units aren’t considered to give a fast payback, latest report by Asteco reveales.

According to consultancy’s experts and to data compiled by imexre.com experts, three bedroom villa and townhouse rentals in such popular Dubai's low-rise areas as The Meadows and The Springs increased by 29.44% in 2015 and by as much as 71, 43%, respectively, compared to 2010/2011 level.

The Meadows is a quiet green area stuffed mainly with two-storey three to seven bedroom houses, usually with its own garden and garage. And The Springs area is inhabited mainly by those who prefer townhouses — there are about 4000 two to four bedroom townhouses build in this community.

Surely villa rentals have declined slightly in 2015 due to the cooling of demand, but rent yields in this real estate segment are still between the highest worldwide, reaching an average of 5.5%, according to Asteco report.

The average villa rentals in The Meadows to date are about US$ 63,450 pa, while townhouses in The Springs can be rented for about US$ 49,000 pa.

As for the future prospects, opinions differ. Some experts predict rentals to go down, in case all the planned housing stock will be completed in time. However, this is unlikely to happen, that’s why other experts like JLL may be more right in their forecast for Dubai rental growth next year.

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