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Despite price declines, yields remained high in both Emirates
UAE real estate markets were stable in Q-1 of Y 2016 as major developers continued to launch mega projects, according to property site www.Bayut.com
The company said there were welcome signs of recovery in the apartment sales market in February, with encouraging gains in some categories.
“The apartment rental category remained robust, with lucrative yields in both Dubai and Abu Dhabi keeping property investors interested in the real estate markets of both emirates,” the company said.
In Dubai, developers took a more considered approach to new supply and there was a movement of tenants to the city’s suburbs. Apartment rents fell 3% during the quarter and sales prices dropped 6%, adjustments described at “subdued” by Bayut.
However, a comparison to average rents in December found that rents had increased 3% on average with apartment yields standing between 6 and 8% and as high as 9% in suburb areas like Sports City and Dubailand.
In an analysis by apartment type, studio rents were found to have decreased 5% in Q-1 commanding an average of Dhs 60,000. 1 and 2-bedroom apartments saw declines of 4% and stood at Dhs 98,000 and Dhs 154,000 on average respectively. Smaller declines were seen in larger high-end apartments, with 3 and 4 bedroom unit rentals decreasing 4% on average to Dhs 210,000 and Dhs 321,000 respectively.
Bayut said almost 4,600 units were completed in the quarter, with the majority located in Jumeirah Village Circle, Mohammed Bin Rashid City and Dubailand.
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