Commercial realty offers 12% yield

The office property market in Dubai is expected to be relatively more resilient, promising yields as high as 10 per cent to 12 per cent per annum despite a global slowdown, analysts said.

Although the number of overseas enquiries for office space has dwindled, companies are staying put at their current premises as landlords offer flexible payment terms.

"Since new stock is unlikely to come in for the next few months, we believe yields will remain high, between 10 per cent and 12 per cent per year. However, we do expect commercial property prices to fall by 10 to 20 per cent," Asteco Managing Director Andrew Chambers told Emirates Business.

According to Colliers International Chief Executive John Davis, yields will remain high compared to other markets, but will decline from previous highs on declining demand.

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