The average annual rent for an apartment in Dubai fell to AED114,000 ($31,000) in January, down 3 percent from the previous month, according to a new report.
Real estate website Bayut also said average rents in neighbouring Abu Dhabi rose by 3 percent to AED120,000.
During January, Bayut said average rental yield for all apartment types in Dubai topped out at 5.72 percent, but yields in individual bed categories and areas were as high as 10 percent.
Its report said in the studio apartment category, average rent in Dubai was recorded at AED51,000 per annum, down 4 percent from December while rent for 1-bed units surged during the month, rising 5 percent to AED90,000.
There was a 2 percent improvement in average rent for 2-bed units in Dubai while three-bed unit rents also increased 2 percent to AED191,000.
Bayut said larger units in the 4+ bed category commanded an average rent of AED344,000 in January, up 10 percent on December’s value.
In Abu Dhabi, the average studio unit rent held its ground at AED48,000 and 1-bed unit rents rose by 1 percent to AED85,000.
However, Bayut reported that 2-bed units saw average rent falling by 2 percent to AED122,000 while three-bed apartments’ average rent also fell by 1 percent to AED164,000.
The report said larger apartments falling in the 4+ bed category in Abu Dhabi commanded an average rent of AED217,000 in January.
It added: “Given the strength of its diverse economy and the ability of the country’s various public and private economic segments to continue churning out work opportunities, we believe the UAE’s allure to the global expatriate community will only grow stronger in the years to come.
“The unique edge the country has in the shape of Expo 2020 will always come into play, but the UAE’s economy has generally exhibited resilience in the face of international turmoil over the past months, and that is what inspires investor confidence.”
Bayut said that as both Dubai and Abu Dhabi remain regional powerhouses for leisure, trade, manufacturing and business services, the influx of global talent will continue to have a “positive bearing on the real estate sectors in the two main emirates, helping them stay well clear of troubled waters”.