The real estate sector of Dubai is still a lucrative investment avenue for global investors. Despite all fluctuations and cooling measures, it continues to offer rental yields as high as 7% in select apartment categories, according to UAE online realty portal Bayut.comâ€™s latest property report. In its Q3 2016 property report, the portal revealed that apartments in the emirate were offering 6% rental yields on average even with the rents falling 2% in Q3 2016.
The website further reported that the properties were becoming more affordable in the emirate and the attractive good rental returns may further increase the buying activity in the market. In September, Dubai Land Department (DLD) reported that the buying activity was increasing in the market and the emirate successfully recorded property transactions worth more than AED 158 billion ($43 billion) during the first eight months of 2016. The mammoth investment was amassed through 38,800 sales, mortgages and other transactions.
What particularly grabbed the attention of property experts was that the market conducted a total of 15,493 property transactions having an aggregate value of AED 60.5 billion even in the summer months of June, July and August. The summer is traditionally considered a slow time for the realty market in Dubai.
Noticing the trend, DLD Director General Sultan Butti Bin Merjen viewed the figures proving Dubaiâ€™s importance as a profitable hub for parking money. He said that the real estate transactions in the emirate demonstrated strong momentum from the beginning of 2016 and viewed the heightened activity bolstering the property market in the near future.
Talking of heightened activity, Bayut.com observed that localities such as Dubai Marina, Jumeirah Lakes Towers and Bur Dubai were generating the most property search hits in Q3 2016 for renting apartments in Dubai. For buying apartments in the same period, Dubai Marina, Jumeirah Lakes Towers, Downtown Dubai and Business Bay dominated the charts.
On the other hand, Seeh Shuaib 1, Sheikh Mohammed Bin Rashed Gardens, Hebiya 3, Al Yafra 3, and Al Yafra 5 were the areas that saw most land sales transactions getting through in Dubai, per DLD report. The popular areas for mortgage transactions were Thunaya 5, Hebiya 3, Wadi Al Safa 6, Wadi Al Safa 5 and Al Thunaya 4 areas. DLD further reported that for buying apartments, the top localities in Dubai were Business Bay, Dubai Marina, Burj Khalifa, Jabal Ali and Warsan 1. Interestingly, Dubai Marina was the number one for unit mortgages and was followed by Al Thunaya 5, Business Bay and Burj Khalifa.
With two months yet to go and the recently concluded Cityscape Global becoming a launch pad for several attractive projects, property experts expect a good number of property buyers to turn up for investing in Dubaiâ€™s real estate market in the coming weeks.