Real estate portal Bayut.com announces biggest winners and losers in 2017
Dubai International City saw the largest drop in rents during 2017 with values down by 16 percent compared to the year-earlier period, according to real estate portal Bayut.com.
The average rent for a one-bed apartment in that part of the city stands at AED42,000, amking it the most affordable popular area in Dubai.
Bayut's end-of-year report also said that Dubai Marina has retained its reputation as the most sought-after area for renting, followed by Dubai International City, Dubai Silicon Oasis, Mirdif and Bur Dubai.
It added that the average rent in Downtown Dubai, the most expensive of popular areas, was AED110,000, 5 percent lower than late 2016.
Bayut's research revealed that the only apartment type not experiencing a dip in rental values in 2017 is studio units in Mirdif.
The report said yields remained stable at 7 percent for apartments and 5 percent for villas despit softening rent and sales prices in Dubai.
Bayut also named Dubai Marina as the most desirable area in the city for buying apartments in 2017, ahead of Downtown Dubai, Jumeirah Village Circle, Jumeirah Lake Towers and Palm Jumeirah.
The report said Dubai International City is the most afforable with one-beds averaging AED475,000, down 5 percent from 2016, while Palm Jumeirah are the most expensive, with one-beds demanding AED2.4 million.
Most areas and property types saw prices fall although studios in Dubai Silicon Oasis and Dubai Sports City, one-beds in Palm Jumeirah and two-beds in JLT saw a rise in values.
Bayut said off-plan listings remain popular with Dubai Marina the most sought after, followed by Downtown Dubai, JVC, JLT and Dubai Silicon Oasis.
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.”