Dubai Rental Yield Growth remains quite promising, thanks to it’s accredited developments, optimal locations and robust infrastructure. With these favorable factors the investors all around globe find this city perfect location to buy, reside & invest. If we talk specifically about transactions last year 2023 was closed with whopping 1.6Million transactions in diversified real estate categories. These numbers were officially revealed by Dubai Land of Department stating the significant growth of 16.9% in this sector. The transactional growth and incline of foreign investments has also rosed rental yield in Dubai bringing them on the stable ration of 7% to 10% in majority of Dubai areas. Whether you decide to buy a property for residing purpose or planning to put it on rental contract, this city is here to deliver profits, higher appreciation and great rental returns.
What is meant by rental yield?
The term rental yield is associated with a property’s rental contract. Or in other words, the term rental yield expresses the amount of expected annual income gained on your property or asset. It is formulated by dividing the yearly rental income received from an asset by asset’s purchase price.
For example, if your property is worth $ 1.65 million, the annual income generated from this property is estimated to be around $115,000. This evaluates the rental income to stand at a steady 7& to 8% per annum.
What is the growth of rental yield in Dubai, UAE?
The real estate industry of UAE has always been active, as evidenced by the considerable growth in the rental yield in multiple cities of Dubai. The average rent in Dubai saw a sharp spike in 2023, rising by 12% annually in the third quarter before slowing to 5.7% by October. Despite this modification, the average rental yield held steady at 8.7% in October after an impressive 8.8% in the third quarter.
Renowned real estate marketing enthusiasts have noted that in 2023, the rental yield on properties for sale in the UAE was projected to be around 8%. The credit goes to well-built housing projects and residential complexes at competitive prices.
However, Dubai’s increasing demand for real estate also aligns with the UAE’s goal to double its population and improve quality of life. This demand propels the sector’s growth in line with the Emirate’s ambitious developments. Also, the national pattern of political stability, economic expansion, and a welcoming investment climate will keep the real estate market growing through 2024.
To take a look at a few months back, 2023 has been a remarkable year for the UAE real estate market, with higher demand, more transactions, and higher-quality deals. Innovative and proactive steps and changes to residence restrictions increased investor trust and spurred a wave of new investments. Sales and rental prices rose due to strong financial flows from high-net-worth individuals and limitations in supply. Demand was further stimulated by the variety of real estate goods and the expedited payment procedures; continuous increase is anticipated until 2024.
Latest Record of Real estate transaction in Dubai 2024
Dubai’s real estate industry has grown and persevered admirably as of 2024, with a considerable uptick in sales transactions. Sales transactions jumped by more than 27% to 11,900 deals in February 2024 alone compared to the same time in 2023. This increasing trend highlights the market’s continued strength, driven by consistent momentum from the prior year.
The Dubai property market has been booming partly because of the notable demand for off-plan properties. With sales of Dh35.4 billion in January 2024, sales broke records and increased significantly from Dh27.9 billion in January 2023, a 27% rise. The real estate market in Dubai is well-positioned for sustained development and prosperity until 2024, with one-bedroom apartments coming in second with 33% of all searches and two-bedroom apartments emerging as the most popular rental option with 35% of all searches.
Which Areas in Dubai offer higher rental yields in Dubai?
Here are some statistics extracted through annual transactions in these popular areas of Dubai, reflecting the robust potential of higher rental yields in this Emirate.
| AREA | RENTAL YIELD% | PROPERTY TYPE |
| Jumeirah Village Circle | 5.6% | Studios & apartments |
| Dubai Marina | 6.54% | Apartments & villas |
| Business Bay | 5.72% | Apartments & penthouses |
| Downtown Dubai | 5.59% | Apartments, townhouses & villas |
| Jumeirah Beach Residences | 5.82% | Apartments, villas & mansion |
| Palm Jumeirah | 5.34% | Apartments, resorts, & retail units |
| Dubai Hills Estate | 6.04% | Villas & townhouses |
| Al Barari | 8.30% | Villas & townhouses |
Conclusion
In a nut shell, Dubai shows no signs of slowing down in 2024 as well. With the impressive architecture, substantial returns and steady appreciation on property, the investors love investing here! Looking ahead to coming years, Dubai’s real estate market seems to be headed in a positive direction, offering stable growth and profitable prospects for anyone looking to take advantage of the city’s thriving environment.
