Real estate markets in the UAE witnessed contrasting trends in November with sales prices and rents up in Dubai but values falling in Abu Dhabi, according to a new report by Bayut.com.
Property website Bayut said the real estate market in Dubai was buoyed last month by a spate of project launches, stirring up interest in the market but activity in Abu Dhabi was slow, resulting in a more stable market.
In Dubai, average apartment rents climbed to AED127,000 ($34,500) in November, up 2 percent over the average rental value in both October and Q3.
Average apartment prices increased by 1 percent compared to October, and by 0.3 percent against the Q3 value, having a slight effect on the average yield, which was recorded at 5.7 percent.
Bayut’s research said the average studio unit rent dropped 2 percent to AED55,000 in November compared with the previous month’s AED56,000, but there was no change in the value when compared with the Q3 average.
The average rent for both 1-bedroom and 2-bedroom apartments registered a 1 percent increase in value at AED93,000 and AED145,000 respectively while 3-bedroom rents improved by 2 percent compared to the October value to climb to AED203,000.
Bigger units, the 4+ bedroom category, experienced the biggest change in average rent, improving by 6 percent compared to October with an average rent of AED313,000, Bayut added.
In Abu Dhabi, the average apartment rent of AED129,000 was down 1 percent month-on-month. Overall, the average yield stayed stable at 6.75 percent.
Bayut reported that rents for studio units in the UAE capital took a hit, dropping to an average of AED54,000 from October’s AED58,000.
At AED90,000, the average rent for 1-bedroom apartments was down 2 percent from the October average, but the value was the same as the Q3 average.
Average rents for both 2-bedroom and 3-bedroom apartments were down 3 percent in November, falling to AED126,000 and AED168,000 respectively while the average rent for the 4+ bedroom category dropped 7 percent at AED236,000 compared to October and down 2 percent compared to the Q3 average.
“With the prices and rental values in Dubai’s real estate market making a marginal but steady recovery, the odds seem to be in the emirate’s favour. Riding high on its diverse economic portfolio, enviable lifestyle, its position as the regional business hub and its continuous utilisation of technology for socio-economic improvements, Dubai remains an international powerhouse sitting high on the global business and expat communities’ priority lists,” said Bayut.
It added: “Despite a relatively stable month, Abu Dhabi continues to offer fierce competition to its neighbour on all economic fronts, including the real estate industry. Having ably coursed its way through the oil price and liquidity crunch, the UAE real estate market is much more prepared to negotiate crises small and large, and heading towards a level of maturity that invites long-term investor indulgence.”
