# Rental Yield falling ?



## arfie (Jul 23, 2004)

Read a report today stating that Rental Yields have fallen in Dubai. With so many properties being built it seems like rental prices are going to carry on falling further over the next 2 years. When everything is built there are going to be alot of empty apartments. 

Any views on this ? Is it still a good idea to buy in Dubai to rent a property ?


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## juiced (Aug 18, 2004)

It depends really. For the more expensive properties, rental yields have definitely gone done, but for the cheaper ones they are generally better.

Example, A bit 4,000sq ft Hattan villa costs around Dhs3.5m to 4million, but you could only rent it out for around Dhs200,000/year or so.

1BR Greens Apartment when they came out where around Dhs250,000 or so and they are being rented out for Dhs40,000 per year, so the yield is a lot better than the Hattan villa's.

Although the govt says that all these residential developments won't be empty because they are expecting loads of people to come and live in Dubai, I personally think there will be an oversupply in APARTMENTS. Just think how many there will be: Dubai Marina, JLT, JBR, etc etc etc

Villas won't be in as much trouble, but I can't really say whether there will be oversupply as well. Emaar has sold out all its villas in the Emirates Hills area, but not all the construction work has finished, meaning it's hard to tell yet how good the occupancy rates are and so on coz the houses aren't finish.

Hope I haven't rambled, but I think, yieldwise, it would be better to get the less expensive properties in general.


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## arfie (Jul 23, 2004)

when talking about less expensive are you talking about the figure of around 1m DHS.

What kind of rent money is going for 2 and 1 bedroom apartments at the moment ?


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## SA BOY (Mar 29, 2003)

All depends where you want to live. The lakes gets more expensive every year just cos of its location and the fact that it runs a long waiting list. these news towers are negotiable on the rent. Again, do you wanna live in a tower or on a golf course?


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## juiced (Aug 18, 2004)

arfie said:


> when talking about less expensive are you talking about the figure of around 1m DHS.
> 
> What kind of rent money is going for 2 and 1 bedroom apartments at the moment ?


The less expensive mark differs between apartments and villas. For apartments, I'm not sure what that would be but they seem to be more expensive than villas, given cost/sq foot etc etc.
As for rent money, it depends on the type of apartment you're looking at. Dubai Marina apartments, a 1bd is renting out for around Dhs60-70000/year and then a cheaper Greens apartment is around Dhs40,000/year. 2bed Greens apt around Dhs60-70,000/year. The rental yields are better the cheaper your property is basically.


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## arfie (Jul 23, 2004)

60-70000DHs for a 1 bed is really good return I guess especially compared to UK. Will it be the same at Jumeria Lake Towers ? 

What kind of rental yield on 2 bed apartments at the Marina and JLT then ? Also will it be still easy to rent by 2006 ?


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## Trances (May 19, 2003)

cant belive rents are going to drop for some time 
how cna they or very one owuld lose on their investment


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## arfie (Jul 23, 2004)

well if there are lots of aparments that are empty then obviously rental yield will fall. However in the JLT and Marina it will probably stay stable cos of Internet city and Media City.


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## juiced (Aug 18, 2004)

arfie said:


> 60-70000DHs for a 1 bed is really good return I guess especially compared to UK. Will it be the same at Jumeria Lake Towers ?
> 
> What kind of rental yield on 2 bed apartments at the Marina and JLT then ? Also will it be still easy to rent by 2006 ?


No idea what rental yields are for JLT. 60-70,000 for a 1bed was good return if you bought the property a year or two ago, but if you were to buy it now, the price would have gone up, so the yield would have gone down


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## DUBAI (Aug 24, 2004)

ive just got to worry what will happen to "little dubai" on the edge of sharjah, how can this area stay sustainable as all the development of apts in dubai come online. surley the rents in parts of dubai will come down and the comuter traffic will surlry scare people away...


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