Despite a slowdown in the general real estate market, certain areas of Dubai still offer significant rental yields for overseas property investors.
For example, property prices in International City have dropped by 2.6 per cent. It is a popular area for the working class. Despite falling rental yields, which have declined by a minimal 0.2 per cent, investors can still benefit from significant rental yields of 6.23 per cent year-on-year as an average.
Dubai Sports City can offer apartments with the best returns of up to 9.2 per cent per year. However, the apartment rates in the area have fallen by nearly 2 per cent in the last six months. An apartment in Dubai Silicon Oasis offers a rental yield of 8.7 per cent year to date average. However, this has fallen by 3.6 per cent in the past six months to reach this point.
Jumeirah Village Triangle, although still under development, is attracting a significant number of tenants. It is considered a good location for those working in Dubai South. Prices in the area dropped 2 per cent in the past six months, but apartments there generally fetched an 8.45 per cent rental yield during the year to date.
According to Luxhabitat, Discovery Gardens, Dubai Investment Park, Jumeirah Village Circle, Liwan, IMPZ and Dubai Residence Complex all offer rental yields between 7.9 per cent to 8.4 per cent. In these communities, apartment prices have fallen between 1 per cent to 2.8 per cent in the last 6 months.
Similarly, studies from Chestertons Mena said that apartment rental rates in Dubai fell by 4 per cent on a quarterly basis in Q2 2018. A study conducted in July from the property portal Bayut said that the Dubai rental rates had declined by two to nine per cent in the past 12 months.