High service fee leads to low rental yield

Service charges in Dubai have not declined this year compared to 2009, resulting in lower gross rental yields, said Harbor Real Estate.

In a report, exclusively given to Emirates Business, the Dubai-based real estate consultancy, which undertook a comprehensive study of 77 apartment buildings, found the largest increases in service charges in the Views and Greens projects with an average increase of Dh1.15 per square foot. However, service charges in the Marina and Downtown areas remained unchanged.

In the Marina, service charges ranged from Dh14.87 per square foot to just under Dh20 per square foot depending on the tower, while charges in Downtown ranged from more than Dh20 per square foot to a high of Dh60 per square foot at the Address Hotel.

One of the best rates were found to be in MotorCity Green Community where owners need to pay just Dh10.5 per square foot.

Follow Emirates 24|7 on Google News.