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July 27, 2016 | 12:25 | Dubai
Dubai residential market recorded little or no movement in sales or rents resulting in a relatively flat performance in Q2 2016, according to a report by international property agency Chestertons MENA. However, the report did note that landlords continued to benefit from solid rental yields, especially those owning apartments in the more affordable developments of Discovery Gardens (10.2%), International City (9.4%) and Dubai Silicon Oasis (7.9%), while apartments returned 7.5% gross yield across the board on average.
In terms of villa yields, the average across Dubai was 4.8%, but the stand out performers were The Springs (6.4%), Jumeirah Village Triangle (5.9%) closely followed by Victory Heights (5.8%). “Overall, apartments tend to provide a higher average yield than villas and especially those in the more affordable developments. This bodes well for developers of any upcoming projects in Dubai fitting this category, as they will surely attract investors, no doubt pleasing tenants on modest incomes,” said Declan McNaughton Managing Director UAE, Chestertons MENA. The resilient performance in apartment yields was all the more impressive given rental rates during Q2 were down on average 0.95% while sales prices were up 0.7% on average squeezing margins.