Real estate markets in Dubai and Abu Dhabi witnessed marginal growth in property prices during May, according to a new report by Bayut.
Compared to April, average apartment rents in Dubai grew 1.57 percent in May, while average rental yields remained at 5.3 percent, the report said.
It added that the average rent for studio apartments went up to AED57,000 in May, an increase of AED1,000 on the previous month.
Bayut said average 1-bedroom apartment rents rose by 1 percent in May to AED95,000, while the average rent for 2-bedroom units remained stable at AED149,000. Three-bedroom apartments were rented out for an average of AED206,000 in May, up 1 percent on April.
The average rent for 4+ bedroom apartments, which went down to AED294,000 in April after a 10 percent fall in values, regained lost ground in May, climbing to AED321,000.
The Bayut report said: "Dubai's suburbs continue to attract residents and investors thanks to their affordable prices and rents, as well as rental growth and decent yields. Apartment rental yields in Abu Dhabi returned stronger values than the returns in Dubai, showcasing the strength of the UAE capital's market."
In Abu Dhabi, average apartment rents, which lost 0.72 percent of their value in April, made a comeback in May by registering a 0.73 percent growth. The average rent in the UAE capital was calculated at AED137,000 across all categories, while overall rental yields were recorded at 7.2 percent.
Bayut said studio units led the pack by offering a 8.1 percent yield on average. Average rent for the category was recorded at AED63,000.
In the 1-bedroom category, average rents lost 2 percent of their value month on month, going down to AED97,000. Two-bedroom apartments fetched an average rent of AED139,000 as the value showed no change in May.
Three-bedroom and 4+ bedroom apartments were being rented out for AED184,000 and AED254,000, respectively, in May, Bayut added.
The Bayut report said: "As far as real estate activity is concerned, the realty landscape of both Abu Dhabi and Dubai is faring well. Projects launched in the recent months are now being reported to have completely sold out, depicting the interest investors - both domestic and international - have in the two markets.
"The UAE government's commitment to infrastructure spending in both emirates will continue to boost morale in the two markets and help push them forward. The nation's successful negotiation of the oil price crisis has helped buoy its realty markets, which will continue to see increasing investments in the hospitality and entertainment sectors as we head closer to Expo 2020."
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