For investors buying purely for earning income, who are less concerned about growth, the rental yield is the most important factor to consider. The good news is that the UAE has maintained relatively stable yields from June 2017 – June 2018, ranking among the world’s highest yields. In this article we show how Dubai, Abu Dhabi and Northern Emirates compare to other cities around the globe and how rental yields have been impacted throughout the Emirates over the past year.
Rental yields are the rental income (the money a tenant pays to the landlord) as a percentage of the property’s value. It is fairly simple to calculate:
Rental yields are determined by a number of factors, according to Lukman Hajje, Chief Commercial Officer of Propertyfinder Group.
Typically, smaller properties produce better rental yields than larger ones. Apartments are better than villas, and studios are better than larger apartments, for example.”
“But also consider location. Newer, emerging communities offer better rental yields than more established communities. Newer cities offer higher rental yields than established cities.