Residential rents in Dubai and Abu Dhabi moved downwards during the first half of this year, compared to the same period last year, according to a report.

Many housing options across Dubai have become much more affordable than they were in 2015, the Bayut report said.

However, homeowners did not feel much heat from falling rents as yields remained at attractive levels in both the main emirates of the UAE, it said.

Rental apartments in Dubai offered owners an average yield of 6 per cent in H1 2016 while those in Abu Dhabi returned 7 per cent during the same period.

Comparing results of H1 2016 with H1 2015, Bayut said apartment rents in Dubai come down 6 per cent on average, with average rents hitting Dh131,000 per year. Apartment rents in Abu Dhabi were down by 3 per cent in H1 2016, compared to H1 2015 figures, with average apartment rents hovering around the Dh135,000-mark.

DUBAI
Category wise, studio apartments in Dubai commanded rents of Dh57,000 in the first half of 2016, down 7 per cent against H1 2015. The average rent of one-bed and two-bed apartments in the emirate was around Dh99,000 and Dh150,000, respectively, coming down by 4 per cent and 6 per cent. The average rent of spacious options such as three-bed and four-bed apartments was down 6 per cent. Average annual rents for the two categories were Dh205,000 and Dh310,000 in the first six months of the year.

Considering the property yields, studio and one-bed apartments, being most popular housing categories, returned an average yield of 7 per cent. The two- and three-bed apartments kept investors engaged with yields of 6 per cent and 5 per cent, respectively, while the 4+ bed category returned a mere 3 per cent in rental yields in H1 2016.

Bayut also ran a quarter-on-quarter (QoQ) analysis and again found apartment rents adjusting 7 per cent on average at the end of Q2 2016. The average rent of studio apartments in Dubai declined 7 percent in Q2 2016 against average rent in Q1 2016, while the rent of one-bed apartments increased by 1 per cent. Bigger units like two-bed and three-bed apartments saw a 5 per cent and 3 per cent decline respectively.
 
ABU DHABI
Faring marginally better than neighbouring Dubai, average rents in the UAE capital declined by 3 per cent.

Studio apartments in Abu Dhabi cost an average of Dh63,000 to rent in the first half, an increase of 2 per cent. One-bed apartments were rented out at an average of Dh97,000, the rates having dropped by 1 per cent compared to H1 2015. The rents for two-bed and three-bed apartments averaged Dh136,000 and Dh181,000, respectively, posting a 4 per cent and 2 per cent decline.
 
Studio apartments topped the rental return chart with a 9 per cent yield on average, while one-bed and two-bed apartment categories followed with 8 per cent and 7 per cent respective yields. Larger options like three-bed and 4+ bed apartments also attracted investors during the first six months of 2016 with 7 per cent and 5 per cent rental returns. -TradeArabia News Service