Dubai-based real estate investment advisory company - RichVille Real Estate - issued a property Rental Yield Index for the different areas of Dubai.

Dubai 30th of September 2012

The report highlights the current status of the residential and office property markets and provides insights on the market forming a set of suggestions that RichVille hopes can enhance the activity in the property market.  Such suggestions include expanding the free hold areas to include some developed areas like Al Barsha to attract large and institutional investors to invest in Dubai since most of the remaining investment opportunities are down to the unit level.  The report also suggests re-evaluating and re-structuring some free zone areas to remove the free zone label off the underperforming commercial properties in these areas.

 The report elaborates on the findings of the Property Rental Yield Index to highlight that while the global average rental yield rate is around 5%, most of Dubai's freehold areas offer Net Rental Yields (after deducting 20% as service charges) that are above the global average, with many areas ranging between 6-7%.  Dubai International Financial Centre (DIFC) is offering the highest net rental yield at 8.9% given that sales prices have declined at a much higher rate than rental rates since the beginning of the crisis. Villas in Palm Jumeirah on the other hand, offer the lowest net rental yield at 4.4% mostly driven by the high increase in villa prices over the past 12 months.  Rents have increased in Palm Jumeirah but at a much lower rate than prices.   

Commenting on the report, Mr. Tariq Ramadan, Chairman on Tharaa Holding, of which RichVille is a member, said: "as real estate investment advisors, we understand that the first question that investors ask when presented by an opportunity is; what is the Return On Investment or the Rental Yield? And we have therefore, created the Dubai Property Rental Yield Index to assist investors in better understanding the difference in expected returns from one area to the other and from one sector to the other.  It goes without saying that the index is meant as a high level directional indicator to compare between the different areas, however, each property within each area will have its own net rental yield depending on its type, size, finishes, views and the developer. Our plan for this report is to also monitor changes in rental yields on a quarterly basis".

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About RichVille Real Estate
RichVille Real Estate is a Dubai-based real estate investment advisory company offering the entire gamut of real estate advisory services including investment, development, new projects sales and marketing, selling and leasing brokerage, feasibility studies and fund advisory services. RichVille advisory services are built on the edifice of experience, market knowledge and a professional approach.

Sales Price and Rent Price Market Data were provided by REIDIN.com which is a one stop shop for real estate information in emerging countries.  REIDIN.com helps professionals and individuals easily access the real estate information they need to make more informed investment, purchase, sales, rent, mortgage, finance, development and management decisions.

For More Information Kindly Contact
Emad Darwich
Media Relations
RichVille Real Estate LLC
Telephone:       +971 4   228 2656
Mobile:             +971 50 554 2558
Email:               edarwich@richvilleproperties.com
Website            www.RichVilleProperties.com

© Press Release 2012