Printer Friendly

10 best places to buy homes in Dubai for rental earnings.

Summary: With many properties now priced under Dh1 million, the current market is a buyer's market

International City offers the highest annual net yield among communities in Dubai at 8.2 per cent Image Credit: Gulf News Archives Also in this package

The complete guide for buying a house in the UAE

Purchasing property as a first-time homebuyer can be quite overwhelming.

There are many factors that one needs to think about before deciding on a unit.

With many properties now priced under Dh1 million, the current market is in no doubt on the buyer's side. When buying a property, it's important to calculate the yield that tells you how much return you are likely to get on your investment.

Gross yield and net yield

There are two ways yields are calculated: gross yield and net yield. Gross yields are calculated by dividing the property value by the annual rent.

Net yields, however, provide a better picture of your investment. The net yield is calculated by dividing the total purchase cost of the property by the net rental income (to get the net rental income, subtract all running costs such as service charges, insurance, etc. from the gross rent).

Based on the ValuStrat Price Index, the average net returns in Dubai are 4.6 per cent for villas and at 5.8 per cent for apartments.

Best net rental yields

The top ten net rental yields in Dubai according to the ValuStrat Price Index are in the following communities:

Location: Annual net yield International City 8.2% Remraam 7.6% The Greens 7.5% Discovery Gardens 7.1% Dubai Production City 7.0% The Lakes 6.7% Jumeirah Village Apartments 6.2% The Views 6.2% Dubai Sports City 6.0% Jumeirah Village Villas 6.0%

[c] Al Nisr Publishing LLC 2019. All rights reserved. Provided by SyndiGate Media Inc. ( ).

COPYRIGHT 2019 SyndiGate Media Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Gulf News (United Arab Emirates)
Date:Jul 30, 2019
Previous Article:Dubai ropes in passengers to help catch human traffickers.
Next Article:UAE teams in bid to consolidate in Tonsberg.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters