Dubai rental rates soared in 2012, new figures show
People who held property investments in Dubai in 2012 had an extremely profitable year, it seems.New figures provided by real estate consultancy CB Richard Ellis have shown that apartment rental rates increased by 17 per cent throughout the 12-month period.In addition to this, the average yield for a villa went up by 14 per cent during the year.These statistics are yet another indication that Dubai's property market is recovering well following the global economic downturn in 2008-09.Foreign investors are flooding back into the UAE and the demand for prime real estate is likely to grow even further in 2013.There have been suggestions that a new mortgage cap may have an impact on the nation's impressive progress, but bosses at CB Richard Ellis refute such claims."Whilst the move may have a moderate cooling effect on overall sales levels, current market growth is being driven by cash investors rather than the end-users," the company stated in its latest report.The organisation also feels that new real estate investor protection laws will have a positive effect on the number of people looking to secure assets in the UAE.It is hoped the legal reforms will offer investors more guarantees when they commission building projects in Dubai.CB Richard Ellis added that most developers are concentrating on more established parts of the city, such as Downtown Dubai and Dubai Marina.This is a trend that has already been identified by numerous property experts in recent weeks.Indeed, Jones Lang LaSalle (JLL) confirmed earlier this month that landlords who hold assets in these areas have been making sizeable profits of late.Speaking to Emirates 24/7, JLL's head of research in the Middle East and North Africa Craig Plumb said there was a clear difference in the rents accrued by property owners in popular parts of Dubai and those who hold real estate in less desirable regions."We have seen an increase in rents in established areas and we expect the same trend to continue. Rents are unlikely to increase in secondary locations," he was quoted as saying.Looking to buy an apartment in Dubai? Let The First Group help you out