By Staff writer
Dubai Marina continues to be the most popular location for tenants, but rental rates and yields for landlords vary depending on the number of bedrooms
Limited new supply and rising population levels saw overall rental levels remain largely stable in Dubai during the month of October, but rates and yields for landlords varied depending on the size of the property, according to data compiled by UAE real estate listings website Bayut.com.
Overall apartment rental levels across Dubai registered a 1.07 percent month-on-month increase in October, the research found. However, studio apartments, which fetched an average sale price of AED850,000 ($231,421), generated average rental rates of AED62,000. This represented an increase of 0.785 percent month-on-month and resulted in average yields of 7.3 percent.
One-bed apartments commanded an average sale price of AED1.5 million, while average rental rates on these units fell 1.79 percent month-on-month to AED101,000 and resulted in average yields of 6.5 percent.
Two-bed apartments fetched an average sale price of AED2.7 million, while average rents increased 1.92 percent month-on-month to AED160,000 and resulted in average yields of 5.8 percent.
Three-bed apartments, costing an average of AED4.2 million, saw average rental rates decrease 2.87 percent month-on-month to AED211,000, resulting in average yields dropping to 4.9 percent.
The four-plus apartment category commanded average rental rates of AED356,000, an increase of 3.19 percent month-on-month and resulting in average yields of around 2.9 percent.
Bayut's research found Dubai Marina remained the most popular location for tenants, showing a 58 percent increase in search hits in October for the popular expat location. The next most popular locations in the top five were Jumeirah Lakes Towers (JLT), Bur Dubai, Downtown Dubai and Dubai Silicon Oasis.