Cashing in on the rental boom

July 04 2008 04:56

In a world where two to three per cent rental returns are standard, the prospect of 17-20 per cent rental returns seem incredible to most property investors. However, this is a reality for many of those that purchased properties in Dubai as recently as two years ago. Current rental yields are not quite as unusual, but still exceptionally high by global standards, hovering between five and 15 per cent, and averaging at about 8 per cent, depending on the type and location of the property. The harbingers of doom have voiced concern over the UAE's maturing (some have said hyperinflated) market. Add to this mix rumours of property oversupply and a resultant fall in rents and property values and you get a dark picture. But talk to active and experienced members of the leasing community, and you get a very different story. Louise Heatley, Managing Director and Owner of Exclusive Property Management Services, said: 'Things are looking good for investors. And news will continue to be good for those that currently own and rent out property in the UAE. Interest in the rental of Dubai property of all types and standards is unprecedented. 'Supply is an issue. But my feeling is that even when the large number of scheduled residential units are delivered this and next year, there will still be a real shortfall. This shortfall in turn will protect the non-occupant investor and keep the rents stable and growing well into the future.'

Dubai rental property to see greater demand

June 04 2008 08:20

Owners of buy-to-let accommodation in Dubai could be set to experience a surge in demand over the next few years, it has been suggested. According to Dubai Tourism and Commerce Marketing (DTCM), about seven million people booked temporary lodgings in the region last year. The organisation believes that by 2010, this number could increase to as much as ten million. This means buying rental property for sale in Dubai could potentially be a highly lucrative investment. Khalid Ahmed bin Sulayem, director general of DTCM, commented: "The next three years will see the most dramatic developments in tourism projects in Dubai." He added that the organisation is poised to play a "crucial role" in ensuring the Dubai continues to attract tourists from across the world. The predictions come shortly after NuBricks.com said the popularity of Dubai with global leisure travellers is having a positive impact on the region's economy.

Dubai rental apartments-a very lucrative investment opportunity