Real estate sources in Dubai have revealed that average profit yields range from 5% to a maximum of 30%, explaining that real estate investment in Dubai remains among the highest in the world thanks to a comprehensive set of economic and geographic factors, noting that returns vary from sector to sector and depend on numerous other factors, including the quality of the property, its location, and the services provided.
The hotel sector leads the way
The «Dubai Real Estate“ platform (aqaratdubai.ae) explained that hotel properties came out on top; ranging from 20% to 30% in 2016 and expected to continue at that level in 2017.
Residential Property Returns: 10–20%
The average return on investment in residential real estate ranged from 10% to 20% at the upper end; however, based on the data, the return on investment in office real estate ranged from 5% to 8%. As for returns on investment in retail real estate, investors receive rental income averaging between 8% and 10% annually, while in the office sector, returns do not exceed 6%. The average return on investment in industrial real estate currently ranges between 8% and 12%.
More than 200 nationalities invest in real estate
The report’s focus on real estate stems from the intense competition in Dubai’s market for this sector and the strong returns in the residential, office, hotel, and industrial sectors, given Dubai’s world-class infrastructure, including one of the world’s fastest-growing airlines, highly efficient airports, a modern and integrated public transportation network, and a smart, integrated suite of government services—all of which have attracted investors from more than 200 nationalities to the real estate market.
Dubai: A Global Hub for Businesses
The report noted that today, major global companies have established hubs in Dubai, and more people aspire to move there and work, It emphasized that the return on real estate investments in the UAE is the highest in the region and among the highest globally, making the market even more attractive and capable of devising new ways to attract Arab and foreign capital, which typically seek safe havens in markets characterized by low investment risk.
In the same vein, Denis Khajimuratov, co-founder of the ”Dubai Real Estate” platform, revealed that Dubai is determined to increase its appeal on all levels, and that the real estate market is being given increasing importance, as reflected in the ongoing efforts by official authorities—led by the Department of Land and Property—to update the legislation governing the real estate market to keep pace with recent developments.
