If you have been reading the Dubai property news, then you will know that rents and prices are under pressure, meaning that they are coming down off recent highs.

These reports do not tell the entire story, and it’s important to understand the real facts behind the headlines

The buildings that are poorly maintained, badly designed, have low-qualityrecreational facilities combined with a lack of decent parking are experiencing a definite drop in rents however yields and occupancy levels remain respectable which is not mentioned in many of the reports.

A property that sells for under AED 500k (£100K) and you can expect very small units or inferior quality therefore tough to find a tenant or future buyer but receives a high rental yield. 

Property over AED 1.5m (£300k) and you have more luxury in a central location which receives a good demand from buyers and tenants but a lower rental yield. 

The sweet spot and focus for investors looking for above-average rental yield combined with quality in Dubai needs to be properties priced between AED 500k and AED 1.5m (GB£ 100k to £300k). 
 

Over the past five years, the UAE’s two biggest real estate markets, Abu Dhabi and Dubai, have acknowledged the rising housing demand from mid-income white collar workers. While Abu Dhabi has set a quota for affordable housing in new developments, Dubai is yet to implement such a measure. Developers are taking notice, albeit slowly, of the housing requirements of a previously underserved market.