The real estate market of UAE sailed stably in May and despite some fluctuations, it managed to post positive figures overall, according to a report.

Apartment rents in the two main emirates, Dubai and Abu Dhabi, exhibited marginal growths in the outgoing month, though the increase was more pronounced in Dubai, stated the report by UAE-based property portal Bayut.com.

Dubai’s suburbs continue to attract residents and investors, thanks to their affordable prices and rents, as well as rental growth and decent yields, it stated.

According to Bayut, the apartment rental yields in Abu Dhabi returned stronger values than the returns in Dubai, showcasing the strength of the UAE capital’s market, it added.

Compared with April 2016, average apartment rents in Dubai grew 1.57 per cent in May 2016, while average rental yields remained at 5.3 per cent.
 
Category-wise, the average rent for studio apartments went up to Dh57,000 ($15,514) in May from the Dh56,000 ($15,243) recorded in April, a growth of two per cent. The average rental yield for studio units in Dubai was recorded at 7.2 per cent, it stated.

The average one-bedroom apartment rents rose by one per cent in May to Dh95,000 ($25,858), offering owners an impressive rental yield of seven per cent.

The average rent for two-bedroom units remained stable at Dh149,000 ($40,556) on average, while rental returns for the category were calculated at 5.7 per cent.

Three-bedroom apartments were rented out for an average of Dh206,000 ($56,071) in May, the value exhibiting a one per cent growth in rent over the April 2016 figure.

The units returned an average rental yield of five per cent in the fifth month of the year.

The average rent for four-bedroom apartments, which went down to Dh294,000 ($80,024) in April after a 10 per cent fall in values, regained lost ground in May. The average rent climbed to Dh321,000 ($87,373), bringing much-needed respite to homeowners.

Based on search hits on Bayut’s web portal in May, the five most popular localities for renting apartments in Dubai were: Dubai Marina; Jumeirah Lakes Towers (JLT); Bur Dubai; Downtown Dubai and Dubai Silicon Oasis.

On Abu Dhabi, the portal said the average apartment rents which lost 0.72 per cent of their value in April 2016, made a comeback in May by registering an almost exact 0.73 per cent growth over the previous months.

The average rent in the UAE capital was calculated at Dh137,000 ($37,290) across all categories, while overall rental yields were recorded at 7.2 per cent.

In terms of individual categories, studio units led the pack by offering an impressive 8.1 per cent yield on average. Average rent for the category was recorded at Dh63,000 ($17,148), said the Bayut.com report.

In the one-bedroom category, average rents lost two per cent of their value month-on-month, going down to Dh97,000 ($26,402). However, average rental yields remained attractive at 7.7 per cent, it stated.

Two-bedroom apartments fetched an average rent of Dh139,000 ($37,834) as the value exhibited no changes in May. The rental yield for this category remained at 7.6 per cent.

Roomier categories like three- and four-bedroom apartments were being rented out for Dh184,000 ($50,083) and Dh254,000 ($69,136), respectively, in May. In terms of rental returns on investment, three- and four-bed units yielded six and five per cent, respectively.

As per Bayut’s findings, Abu Dhabi’s five most popular localities for renting apartments in May were: Al Reem Island; Al Raha Beach; Al Muroor; Khalifa City A and Al Khalidiyah.

On the 2016 outlook, Bayut said as far as real estate activity was concerned, the realty landscape of both Abu Dhabi and Dubai was faring well.

Projects launched in the recent months are now being reported to have completely sold out, depicting the interest investors – both domestic and international – have in the two markets, it stated.

The UAE government’s commitment to infrastructure spending in both emirates will continue to boost morale in the two markets and help push them forward.

The nation’s successful negotiation of the oil price crisis has helped buoy its realty markets, which will continue to see increasing investments in the hospitality and entertainment sectors as Expo 2020 gets nearer, it added.-TradeArabia News Service