Yields firm up nicely for mid-tier locations: ValuStrat

Mid-market is where the yields currently reign supreme in Dubai. And that explains why clusters such as International City and Discovery Gardens continue to give their investors quite a good deal of comfort even in an uncertain rental market.

The consultancy ValuStrat suggests gross yields of 5.5 per cent for villas and 7.5 per cent for apartments, while the net would be 4.4 per cent for villas and 5.3 per cent on apartments.

Based on the latest ValuStrat data, gains of 0.8 per cent to 2.8 per cent were recorded by “mid-range, high-yielding properties” during August. There were also gains for centrally located upscale apartments.

“Compared to a 100 point base in January 2014, the August 2016 overall residential VPI (ValuStrat Price Index) registered 97.6 index points, with no significant change in values when compared to the previous 14 months and down 0.6 per cent when compared to the same period last year,” the consultancy states in an update. (Its index is based on the relative price and rental changes in a select number of freehold clusters it tracks.) During August, based on its index, the villa market registered 96.7 points, down 0.2 per cent since January and apartments 98.2 points, down 0.4 per cent since during the same time frame.

Source: Staff Report, gulfnews.com


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