Dubai developers consider short-term letting

08/02/2010 - Dubai Property News
Dubai developers consider short-term letting
Posted by Bob Brunskill

A number of developers in Dubai are planning to let out units in their new projects in order to boost revenue.

Emirates Business 24/7 surveyed a range of developers who said that by turning units into furnished apartments, they would be able to derive a high rental value.

"Some developers will want to convert their newer developments into furnished apartments for short, medium or long-term tenancies due to the current market conditions," Mohammed Nimer, chief executive officer of MAG Property Development, told the news provider.

Emirates Business also found that the rental price for a furnished apartment was an average ten to 20 per cent higher than that of an unfurnished apartment.

The Dubai real estate agency Better Homes said that furnished one-bedroom apartments were being let for between Dh9,000 and Dh12,000 per month while three-bedroom apartments were fetching between Dh19,000 and Dh25,000 per month.

In addition to high rental yields, the new Sales Price Index for Dubai, which has been launched by the market analyst in partnership with the Dubai government, revealed last week that Dubai property prices rose 0.7 per cent in the final quarter of 2009.