Current Returns on Property Investment
We have experienced a dip in both sale and rental prices across Dubai over the past year but how has it affected the returns for Investors?
The results below show healthy returns on property investment, an average of 6.1% net across the selected communities.
Dubai is still double, if not more than other major cities in the World.
For Example:
Buying an apartment in London (inside the M25) you will be fortunate to receive a 2% net return after costs, less than 1% for a house.
In New York, studio apartments generate higher yields than larger units, earning a median 3.1% compared to 2.6% and 2.5% for 1 and 2-bedroom rentals, respectively.
If you were to buy an investment property in Sydney, Australia, you would receive an average of below 3% gross on a house and 4% gross for a 2 bedroom apartment.
Rents are prices advertised today for long lease and service charges values are provided by propertymonitor.ae
Golden Mile, Palm Jumeirah
1 Bedroom – 1,071 sq ft – Sold 12th August for AED1,400,000
1 Bedroom – 1,041 sq ft – For Lease AED85,500
Service Charge circa 11.41 AED PSF Total on 1,041 sq ft AED11,877 per annum
Net ROI circa 5.2%
Palm Views, Palm Jumeirah
Studio – 549 sq ft – sold 24th July for AED900,000
Studio – 560 sq ft – for lease AED72,000
Service Charge circa 8.77 AED PSF Total on 560 sq ft AED4,911 per annum
Net ROI circa 7.4%
Canal Residence, Dubai Sports City
Studio Apartment, 576 sq ft – sold 2nd August for AED435,000
Studio – 600 sq ft – For lease AED40,000
Service Charge circa AED18.36 per sq ft on a 600 sq ft AED11,016
Net ROI Circa 6.6%
Princess Tower, Dubai Marina
1 Bedroom – 862 sq ft – sold on the 15th August for AED1,050,000
1 Bedroom – 864 sq ft – For lease – AED68,000
Service charge circa AED18.7 per sq ft on 864 sq ft – AED16,156
Net ROI Circa 5%
Yasmine, Azizi Residence, Al Furjan
2 Bedroom apartment – 1,415 sq ft – sold 4th April – AED1,150,000
2 Bedroom For Lease – 1,461 sq ft – AED87,000
Service charge circa AED14.76 on 1,461 sq ft AED21,564
Net ROI circa 5.7%
Burj Views, Downtown
1 Bedroom apartment – 966 sq ft – sold 10th June – AED1,050,000
1 Bedroom apartment – 966 sq ft – For Lease – AED85,000
Service charge circa AED17.5 on 966 sq ft AED16,905
Net ROI circa 6.5%
Springs, Emirates Living
2 Bedroom Villa, BUA 1,647 sq ft, Plot 2,219 – sold 26th July for AED1,350,000
2 Bedroom villa, BUA 1,700 sq ft – For Lease – AED90,000
Service charge circa AED2.37 per sq ft – on plot area 2,219 sq ft AED5,259
Net ROI circa 6.3%
Report compiled by Laura Adams
Data from propertyfinder.ae