UAE. Luxury developer DAMAC Properties has welcomed a report by Global Property Guide which has revealed that the UAE is among the top 5 countries in the MENA region in terms of rental yields.
The study compared the rental yields of apartments, all about 120sqm in size, across various countries. With gross rental yields of 6.89% per annum, the UAE ranks slightly behind Jordan, but is ahead of Egypt, Morocco and Lebanon.
“The UAE has higher rental returns than some of the most popular locations for property investment in the world. With yields at 6.89%, the UAE offers much higher rental returns than for example the UK and more than double the rental yield of Hong Kong” said Niall Mc Loughlin, Senior Vice President of DAMAC Properties.
Another important factor for investors to consider is the favorable tax environment in the UAE. Rental income is tax free, and there are no capital gains taxes levied on the sale of properties.
“The property market in the UAE is changing remarkably; three years ago it was dominated by investors pursuing capital growth, and now that prices have stabilized, it’s characterized by investors seeking continually high rental yields. While the returns aren’t as lucrative, they are still relatively high and most importantly they are consistent” commented Mc Loughlin.
According to the research, Jordan offers the highest rental returns in the MENA region, with gross yields of 10%. While gross yields in the UAE are slightly lower, they are still the second highest in the Arab world.
“Rental yields are extraordinarily high in the UAE, compared to most other countries around the world. Now that prices have stabilised in premium locations, the high yields make investing in the UAE property market an attractive proposition for any global investor” said Mc Loughlin.
The positive sentiment is shared by real estate advisory firm, Cluttons, which predicts good quality; well-established developments will continue to do well at the expense of newer residential areas. The firm also anticipates the residential market will continue to gain from increasingly available mortgage finance options at competitive rates.
DAMAC Properties recently asserted its confidence in the real estate market by offering a 24% rental return guarantee over three years on sales of apartments in the developer’s Burjside Terrace project in Downtown Dubai.
“We recognised the changing dynamic of the UAE property market. Buyers are seeking consistent rental returns, and to show just how confident DAMAC Properties is about the future sustainability of the market we backed all unit sales in our Burjside Terrace development with a rental guarantee” Mc Loughlin said.
DAMAC Properties is experiencing the strongest demand in three years across its range of premium developments at Dubai Marina, Downtown Dubai and the DIFC. There is a strong flight to quality in both Dubai and Abu Dhabi, as existing residents seek to upgrade and new buyers aim to take advantage of market conditions which currently offer extraordinary value for money.
“The UAE is a vibrant, global business hub with world-class infrastructure; strategic location; established tourist destinations, proven business centres; a highly skilled expat workforce; and most importantly strong and stable government leadership” concluded Mc Loughlin.
DAMAC Properties is an internationally recognised, luxury-focused, high-end developer. With a proven track record for delivering some of the most luxurious residential properties across the Middle East region, the developer is well capitalised and has the vision and momentum to provide solid investment opportunities for customers across all the markets in which it operates.
About DAMAC Properties
DAMAC Properties was established in 2002, as a private residential, leisure and commercial developer in Dubai and the Middle East. Since then, DAMAC Properties has expanded rapidly into North Africa, Jordan, Lebanon, Qatar and Saudi Arabia.
DAMAC Properties has completed 36 buildings to date with 7374 units and spanning 13,132,484.00 sq feet with projects in Dubai such as The Crescent and Lago Vista at IMPZ, Executive Heights and Smart Heights in TECOM, Park Towers in the DIFC, Lake View and Lake Terrace at Jumeirah Lake Towers, Business Tower and XL Tower at Business Bay, Emirates Gardens and Tuscan Residences in Jumeirah Village and Ocean Heights, The Waves and Marina Terrace at the Dubai Marina.
DAMAC Properties also has a further 50 buildings at various stages of progress across the Middle East, North Africa region. These consist of 9849 units, spanning 16,886,151.00 sq feet.
In June 2010, DAMAC Properties further reinforced its position as a premium developer with the launch of DAMAC Tower in Beirut, Lebanon. A 28 storey iconic tower, this project is in association with Italian design group, VERSACE, with all interiors being designed by Versace Home. This was followed by the DAMAC Residences with Interiors by Versace Home, launched in Jeddah, Saudi Arabia in June 2011.
The company’s projects are located in the most desirable and exclusive locations and are built to the highest quality specification that has become synonymous with the group. DAMAC Properties’ develop projects that include residential, commercial and leisure facilities that create an integrated community.
In addition to support services provided by the Dubai headquarters, the company’s comprehensive Customer Care Program provides solutions through its vast network with offices in the UAE, Jordan, Lebanon, Egypt, KSA and Qatar.
Further information is available at www.damacproperties.com