- March 1, 2020
- Posted by: Administrator
- Category: Business News
Dubai’s gross residential yields behind only Los Angeles, Moscow and Cape Town, according to latest Savills report
Despite prime residential rents in Dubai falling by five percent last year, the emirate offers up some of the best yields in the world, according to the latest Savills Prime Index” World Cities report.
Dubai and Kuala Lumpur (four percent) saw the highest drops in rents throughout 2019.
The emirate was also the third cheapest city in the world to buy prime property, at $580 per square foot, ahead only of Cape Town and Kuala Lumpur. This was a result of “oversupply and potential renters have a lot of choice and negotiating power”.
“Land-scarce” Hong Kong took top spot ($4,610 per sq ft) followed by New York ($2,510 per sq ft).
However, despite this, Dubai offered some of the best gross residential yields, way above the global average of 3.2 percent at around 4.5 percent and behind only Los Angeles, Moscow and Cape Town.
Apartment and house rents in Dubai remained among the least expensive, according to the index, with both marginally over $1,000 per month, ahead of Guangzhou, Hangzhou, Cape Town and Kuala Lumpur.
The report said: “Globally, one of the key drivers of the market in cities where values are expected to fall is a supply and demand imbalance, including New York, Miami, Dubai and Kuala Lumpur. Hong Kong and Mumbai are the other two cities on the list, both of which are being affected by local politics and economies.”
Dubai’s capital value growth shrunk by almost six percent over the year. This compares to strong growth of 8.8 percent and 6.4 percent in Berlin and Paris respectively.
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