Dubai: property transactions up 11% in Q1 2016
Dubai property transactions in residential property increased by 11% during the Q1 2016 to over $ 7 billion.
According to Chesterton MENA the property transactions with residential property in Dubai increased by 11% reaching 27 billiondirhams ($ 7.3 billion) while the office property transactions dropped of 7%.
Rental yields topped 7.5 percent in secondary locations across Dubai in the first quarter even while rental performance across the emirate in general remained flat, the report showed. Chestertons recorded a 7.5 percent gross yield for apartments and 4.7 percent for villas in the city’s most popular “affordably priced” developments.
The situation in the rental market remained stable except that Downtown Dubai dipped about 5%.
For villas Springs registered the highest rate of return for investors - about 6.4% in the Q1 2016. Apartments yield was 7.5%, while the studio in Q1 were the most profitable (8.4%).
The average sale price of residential units in Dubai was 1221 dirhams ($ 332) per square foot with available supply of 461,000 homes, according to the report. Average apartment sales prices recorded a negligible 0.7 percent decline.
The secondary locations in Dubai again become the most attractive investments starting with the 7.7% yield in Dubai Silicon Oasis and with 9,5-9,6% in the Discovery Gardens and International City.
