Apartments in Dubai hit 7% return on investment in 2017
A recent report from Bayut.com has revealed that Dubai property achieved stable returns on investment (ROI) during 2017, with a trend towards off-plan developments.
The website’s report showed that the average ROI achieved on apartments in Dubai last year was 7%, while villas made 5%, despite an overall softening of rent and sales prices. The figures were based on the 94,000 listings on Bayut.com between November 2016 and November 2017.
Dubai Marina was the most sought-after area for both renting and buying apartments in 2017, with Mirdif and Arabian Ranches proving the most popular for renting and buying a villa.
The report also revealed that the trend of purchasing off-plan is still as popular as ever in the Emirate.
Haider Ali Khan, CEO of Bayut.com, said: “As more and more off-plan projects are completed in 2018, handed over and put on the secondary market, we can expect prices continuing to attract investors while landlords will have to stay competitive to entice potential tenants.
“In the long run, as the market and the broader economy move on a trajectory of diversification and maturity, the opportunity for developers and sellers to capitalise on their investment remains strong.”
2018 is promising to be a good year for Dubai property investors, with nearly 40% of the UAE’s residents planning to invest in property within the Emirate this year. Property investment company IP Global commissioned a YouGov survey which found that property remains the preferred investment asset of UAE residents.
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