Abu Dhabi rental yields higher than in London
UAE capital outshines top global cities with returns as high as 9.2%
The 10th edition of the show will offer real estate investors the opportunity to interact with developers featuring new property launches as well as updates on existing developments in Abu Dhabi
Abu Dhabi is fast emerging as the prime financial, trading, logistics and business hub in the region. According to UAE real estate portal Bayut.com, apartment rental yields in the capital outshine many global cities, including Dubai, with returns going as high as 9.2 per cent in certain categories.
The portal said average apartment rent yield in the emirate remained 6.7 per cent in February, much more attractive than in Dubai, where average apartment yields were 5.5 per cent.
However, it must be noted that these yields are still higher than in global cities like London and Hong Kong, where returns are 4 per cent at best, according to Global Property Guide.
Bayut said average apartment sale prices increased by 5.3 per cent month on month in February, with studio apartments scoring high on both yield (9.2 pent) as well as sale price growth (5.3 per cent).
Yields for one-bedroom and two-bedroom apartments were 7.7 per cent and 6.9 per cent, while sale prices for these two categories returned increases of 1.9 per cent and 2.8 per cent.
If this wasn’t enough, the three-bed apartment category posted an impressive average sale price growth of 9.4 per cent along with equally impressive rental yield of 6.5 per cent.
The portal said Al Reem Island, Al Raha Beach, Al Reef, Al Ghadeer and Saadiyat Island remained the most popular localities for buying apartments in February.
Although the realty market already guarantees lucrative returns, it is set to become even more secure with the implementation of the new property law, which aims to make investments safer and puts real estate developers under more regulations.
The law, which became effective on January 1, will likely be a key point of discussion at the 10th anniversary edition of Cityscape Abu Dhabi, a standout real estate exhibition in the region. Scheduled to be held at the Abu Dhabi National Exhibition Centre on April 12-14, the exhibition will bring together industry experts and stakeholders and is likely to witness the launch of numerous new mega realty projects.
Just as in earlier editions, the Abu Dhabi Market Overview that will be held on the opening day will see valuable discussion of the real estate trends, economic aspects and the market’s prospects in the coming months. Bayut.com is the online media partner for Cityscape Abu Dhabi and their team will be available at the show to further highlight the market’s strengths.
What: Cityscape Abu Dhabi
When: April 12-14
Realty check: key findings
– Al Reem Island, Al Raha Beach, Al Reef, Al Ghadeer and Saadiyat Island are the most sought after localities for buying apartments
– Average apartment rent yields remained 6.7 per cent in February compared to 5.5 per cent in Dubai
– One bedroom apartments yielded returns of 7.7 per cent while two and three bedrooms fetched 6.9 per cent and 6.5 per cent in February