UAE real estate offers best returns on investment

UAE real estate offers best returns on investment
16/03/2019 , by , in INTERNATIONAL

Despite the drop in property prices and rentals over the last few years, Dubai and Abu Dhabi offer rental yields more than double of what is offered by the world’s major established cities such as London, Paris and New York, according to industry analysts.

Moody’s Investors Service expects the UAE residential demand will remain supported by attractive average rental yields ranging between 6 and 7 per cent in the past 12 months.

This is quite attractive compared with other major capital cities such as London, Paris, New York or Hong Kong where average rental yields range between 2 and 3 per cent, the global ratings agency said.

Real estate consultancy JLL expects Dubai to see a total of 117,000 units to be completed before the end of 2020, representing 22.5 per cent of existing residential stock. This will put an additional pressure on the prices and rentals in the country.

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