Shifting sands: UAE rental yields skyrocket to twice major markets
While property prices in Singapore are starting to rebound, and the ultra-prime real estate market in particular is showing growth in 2019, it’s the rental yields in the UAE that are catching the attention of international property investors.
Following years of decline in both property prices as well as rentals in Dubai and Abu Dhabi, rental yields have turned around and are now commanding more than double that of major markets such as New York, London and Paris – and also Singapore. Over the last 12 months, rental yields in the UAE averaged 6-7%, per Moody’s Investors Service, with yields topping out at an astonishing 12.4% for apartments in Ajman.
All this optimism does come with a note of caution, however…
In the next 12-18 months, we expect prices and rental yields to fall as a large amount of new supply comes into the market and demand remains soft.Lahlou Meksaoui, Assistant Vice President at Moody’s
Nevertheless, it’s well above average rental yields in Singapore, which peaked at 5% all the way back in September 2008 and have been scratching around 3.2% through 2018.
Where to now?
- Review the world’s top luxury property markets;
- Strong rental yields are only part of the attraction for these premium new builds in Australia;
- Take stock of the extraordinary condos of Sentosa Cove;
- And get out for a stroll along the bluest of blue-ribbon streets, Cluny Park in Tanglin.
- This just in: Abu Dhabi opens up to foreign freehold ownership.