UAE properties provide higher rental yields than New York, London and Hong Kong
Dubai properties consistently offer rental yields of more than 7 percent on average, which compares favourably with other major cities. Average rental yields in New York stand at 2.9 per cent, London 2.7 per cent, Singapore 2.5 per cent and Hong Kong 2.4 per cent.
“Despite a sustained contraction in prices, Dubai still holds its own as an investment hot spot with attractive yields and new legislative initiatives to further entice investors and companies,” Lynnette Abad, director of data & research at Property Finder, said in a statement on Tuesday.
“Since the change in UAE regulations regarding short-term lettings, we have seen a rapid increase in popularity with single and portfolio landlords alike,” said Nick Witty, managing director of Chestertons Mena.
“With increasing demand for short-term lets and holiday homes, particularly in the run up to Expo 2020, these types of lets are achieving between 25 per cent and 40 per cent higher returns when compared with traditional longer-term leases.”