Average rents in Dubai rose by three per cent in June to Dh74.2 per square feet (psf), taking the annual increase to 16.35 per cent, according to National Bank of Abu Dhabi (NBAD).

The report, released monthly by the bank, showed average residential prices rising by 1.5 per cent in June, with the annual increase being 34.6 per cent. Average prices currently stand at Dh1,099 psf.

The highest annual increase in property prices were seen in International City, Business Bay and Jumeirah Lake Tower, which jumped 62.4 per cent, 50.6 per cent and 42.8 per cent, respectively.

However, the bank’s May report revealed average rents had fallen by 1.4 per cent in May, but after having gone up by 4.7 per cent in April.

The total number of property transactions in Dubai were 5,497 with the value reaching Dh25 billion in May – 74 per cent increase month-on-month (m-o-m) and 27 per cent year-on-year (y-o-y), the Dubai Land Department’s May stats reveals.

In Abu Dhabi, average rent in selected locations such as Al Reef, Al Reem and Al Raha rose to Dh70.9 psf, registering a one per cent increase mom and five per cent yoy.

Average listed residential sales price reached Dh1,123 psf, registering a 22.2 per cent annual increase in Al Reem and Al Raha communities.

Average yield in Dubai stood at 6.75 per cent in Dubai, while it was 7.2 per cent in Al Reef, Al Reem and Al Raha areas of the capital.

Last month, Reidin.com said the Dubai residential property sales and rent index rose by 2.01 per cent and 1.80 per cent in May and 16.1 and 11.9 per cent yoy. In Abu Dhabi, prices and rents went up by 1.28 per cent and 6.2 per cent, respectively, in May.

Deutsche Bank has said that property prices in Dubai rose 6.2 per cent in the first three months of 2013, but apartment prices remain between 43 and 61 per cent below peak prices.

(Home page image courtesy Shutterstock)

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