Why Dubai’s luxury property market still makes sense

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For the luDUBAI-LISTING-edited-161.50xury property investors looking for better than average returns on assets, Dubai’s luxurious residential market still has got what it posses. As per recent Knight Frank survey on cities with the maximum rental profits in the 12 months to September last, Dubai was at ease and was positioned at the top with a 12.4 per cent rise, and ahead of second-placed Tokyo which had a 9.8 per cent increase.

It is the second time in as many years that the city preserved the top spot. According to the analysis by Knight Frank: the prime properties correspond to the top 5 per cent of the housing market in every city.

So, even as property sales values in Dubai pass through an alteration of sort from untenable highs, rentals have stayed constant in the top-end of the market. This had a direct prospect on investor yields.

According to the Dubai Real Estate developer Damac’s Chairman, Hussein Sajwani: The yields on a premium residential investment in London and Newyork were around 3 to 3.5 percent where as the Dubai rental yield was stable at 7 to 8 percent.

So when the values are taken to notice the Dubai property sales values are one tenth of London and New York, 30 percent lesser than Beirut and one third of Singapore. He states that this is a very clear reason why property remains and still posses’ long term potential in Dubai. He says that the investors should not overreact to the slump in the oil price because this fluctuation keeps happening very now and then.

“By what other method can one clarify a 40 percent drop in local stocks in four days and a quick increase in 25 percent in two days? Oil definitely did not go back to $100 at that time”

As per Kate Everett-Allen, Partner for Residential Research at Knight Frank, extravagant property rentals in key urban communities could feel obligated going ahead. “Interest is solidly connected to demand from corporate tenants and thus business outlook,” Everett-Allen said in an announcement. “With the worldwide economy faltering in 2014 business sentiment has dipped.

Once more, corporate occupant request in Dubai stays solid, both from existing organizations and those that have quite recently set up base in the city. Bentley, the UAE renowned carmaker, as of late affirmed the city to have its more extensive provincial and Asia-Pacific operations. It is not alone. Once more, this would mean expanded renting movement for prime residential areas in the city.

Also that, by addition, would be sufficient to keep rental yields on a level. For the investors, these are the main number that makes sense to them.

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