Top 5 areas to rent/buy a home in Dubai & Abu Dhabi

1 min read

Top 5 areas to rent or buy a home in Dubai & Abu Dhabi.jpg

The Dubai Land Department (DLD) data shows consistent transactions in Dubai. In the first six months of2016 investment in Dubai’s real estate sector crossed Dh57 billion and good news has been coming from Sharjah’s realty market too, with the city attracting investments of Dh 12.1bn.

Dynamic Dubai

In July 2016, Dubai’s real estate market showed rental yields going as high as 6.5% in select apartment categories. However, apartment building rents became supplementary inexpensive with a count up downhill adjustment in July of 2% year-on-year and average yield across all bed categories was recorded at 5.6%.The units returned a standard leasing yield of 6.3% in July 2016, with an average rent for 1-bedroom units recorded at Dh92,000 and rental yield  perched to the 6.5% mark. The 4+ bedroom units, returned average annual rent of Dh304,000 in July 2016, exhibiting a 2% downward shift from H1 2016.

Top 5 localities for renting apartments in Dubai (July 2016)

  1. Dubai Marina
  1. Jumeirah Lakes Towers (JLT)
  1. Downtown Dubai
  1. Bur Dubai
  1. Dubai Silicon Oasis

Top 5 localities for buying apartment in Dubai (July 2016)

  1. Dubai Marina
  1. Jumeirah Lakes Towers (JLT)
  1. Downtown Dubai
  1. Palm Jumeirah
  1. Business Bay

Abu Dhabi

In the month of July, the average rent in the UAE capital was recorded at AED 126,000 pa, which was a 6% downward adjustment from the average rent recorded in H1 2016. Yet the average rental return remained at 7% in July 2016, drawing interest from genuine investors.

Comparing values calculated in July 2015, the average studio rent in Abu Dhabi dropped 5% to AED 56,000 in July 2016, while rental values of 1-bedroom apartments came down by 6% to AED 91,000. Two-bedroom and three bedroom apartment rents crashed to AED 129,000 and AED 172,000, respectively, registering fall of 4% and 5%.

Top 5 localities for renting an apartment in Abu Dhabi (July 2016)

  1. Al Reem Island
  1. Al Raha Beach
  1. Khalifa City A
  1. Al Muroor
  1. Al Khalidiyah

Top 5 localities for buying an apartment in Abu Dhabi (July 2016)

  1. Al Reem Island
  1. Al Raha Beach
  1. Al Reef
  1. Saadiyat Island
  1. Al Ghadeer

Is it a good time to buy?

According to Bayut, during general global slowdown, the performance of UAE’s realty market attracts investors. Both Dubai and Abu Dhabi retains global realty investors and the increasing prospects of Sharjah’s real estate sector provide another avenue for investing in fast developing market.

Though in rentals there are periodic shifts, Bayut believes the UAE’s unique selling propositions such as a smart, diversified economy, investment security and promising Expo 2020 will keep the real estate and its allied sectors thriving.

 

 

Resident Editor