Why Dubai’s luxury real estate still makes sense
City has the highest gains in rentals for luxury property worldwide
- Published: 16:11 December 23, 2014
Dubai: For the rich seeking better than average returns on assets, Dubai’s upscale residential market still has got what it takes. According to the latest Knight Frank survey on cities with the highest rental gains in the 12 months to September last, Dubai was comfortably placed at the top with a 12.4 per cent increase, and ahead of second-placed Tokyo which had a 9.8 per cent gain.
Dubai’s ranking came about despite the fact that rental averages for premium properties remained flat between June to September. It is the second time in as many years that the city has retained the top spot. In Knight Frank’s analysis, ‘prime property’ corresponds to the top 5 per cent of the housing market in each city.
So, even as property sales values in Dubai pass through a correction of sorts from unsustainable highs, rentals have remained stable in the top-end of the market. This in turn has been good on investor yields.
“As against the 3 or 3.5 per cent on a premium residential investment in New York or London, and 4 per cent in Singapore, Dubai’s rental yields remain locked at 7-8 per cent,” said Hussain Sajwani, Chairman of Damac Group.