Rental Property Market in Dubai

Demand for property in Dubai is far exceeding supply at present, this has seen a knock on effect on the rental market with rents for residential homes increasing year by year. In 2005 the average rent on a home increased by 40% and by 30% in 2006. This has given property buyers a yield of anywhere between 7 and 12%, far outstripping Europe where the average is around 3%.

These increases however are slowing. In 2006 the Dubai Government introduced a rent rise cap of 15%, and in 2007 lowered this to 7%. This cap is due for review in December 2007 and many expect it to be relaxed. At this time of high yield rentals you need to make sure that you a partner that understands the market in Dubai. We have a residential leasing team that will help to advise you in this potentially rocky area. Now is the time to get in contact if you are either looking to buy-to-let in Dubai or need a partner to help you lease out your current properties.