Average apartment prices up in Dubai but down in Abu Dhabi
Average apartment rents in Dubai increased by 3% in January compared to the previous month but amounts varied across property types, the latest data shows.
Average rents reached an annual rate of AED138,000 overall with the market seeing some adjustments, according to the latest report from property portal Bayut.
The firm also reports an improvement in yields for apartment property investors, reaching an average of just over 6% but these do vary according to property type, location and quality with some reaching up to 10%.
One bedroom apartments recorded an average of AED97,000 in January, down 0.8% month on month while two and three bedroom rents were up 0.1% and 2.2% respectively AED151,000 and AED211,000.
Rental values for four bed apartments also fell, down 2.2% in January compared to December 2015 to AED330,000.
Yields improved across all apartment types. Studios offered average yields of 7.235, one bedroom apartment 6.4%, two bedroom apartments 5.7%, three bedroom apartments 5.3% and four bedroom apartments 3.55%.
Dubai Marina remained the most popular locality for renting apartments in Dubai, followed by Jumeirah Lakes Towers. Bur Dubai, Downtown Dubai and Business Bay.
In neighbouring Abu Dhabi rents are falling with values across all property types apart from three bedroom flats falling in January. The firm said that this could be the market adjusting to growth in 2015.
Average apartment rents fell 5% from AED 141,000 in December 2015 to AED 135,000 in January. Studio apartment rents were down 3.6% to AED64,000, one bedrooms were down 1.3% to AED99,000, and two bedroom flats down 4% to AED136,000.
Four bedroom apartment rents well the most by 4.6% to an average of AED252,000 while three bedroom apartments saw rents rise, up 2.3% to AED192,000.
The firm also pointed out that although apartment rents fell last month in Abu Dhabi, average yields still offered a lot of value for investors, averaging 7% across all types. Yields for studios were 9.4%, one bedroom apartments 8%, two bedroom apartments 7.3%, three bedroom apartments 7.4% and four bedroom apartments 4.6%.
In terms of popularity Al Reem Island, Al Raha Beach, Al Reef, Al Ghadeer and Saadiyat Island remained the top five locations for renting apartments in Abu Dhabi.