LifestyleMay 9, 20233 min read

Strong Rents Support Investor Yields

Rents have risen sharply, lifting yields for investors. Where yields are strongest and how to keep income steady as the market evolves.

Victoria Sterling

Head of Private Clients

Specializing in family office advisory and multi-generational wealth transfer. Victoria manages relationships with 50+ UHNW families across 15 countries.

Rents in Dubai have risen sharply over the past two years, supported by population growth and limited new supply. For investors, rising rents have lifted yields, making Dubai one of the most attractive major cities for rental income.

Where yields are strongest

Mid-market apartments: JVC, Dubai Sports City, Arjan.
Affordable areas: International City, Dubai Silicon Oasis.
Studios and one-bedrooms: typically higher yields.

Prime yields

Prime properties have seen rent growth too, but higher prices mean yields are usually lower than in mid-market areas.

Keeping income steady

Landlords should maintain properties, follow the rules on rent increases using the official rental index and keep good tenants.

Regulation

Rent increases are governed by the rental index, and Ejari registration is required. Landlords should understand their obligations.

Future supply

Completions over the next few years may moderate rent growth in some areas.

Understanding the rental index

Dubai's rental index sets out average rents for different property types in each area and determines how much landlords may increase rent at renewal. The permitted increase depends on how far the current rent is below the average for similar properties. If the rent is already close to or above the average, no increase may be allowed. Landlords must give advance written notice of any increase. Tenants can use the index to check whether a proposed increase is permitted. Understanding the index helps both sides set fair expectations, and it gives investors a realistic view of how quickly rental income can grow on existing tenancies.