Why is expensive rent in Dubai?

The high rental of Dubai real estate for tenants is a minus. And for investors is a big plus, because this means high annual yield.

The objective criterion for determining the high cost of lease is the ratio of its value to the price of real estate. Namely, the answer to the question: how many years you need to rent an apartment to buy it.

In Dubai, this indicator is 10 years (in reality rather than 12 years), and in large European cities 25-30+ years.

The fact is that, unlike Europe or the United States, there is no old fund with pensioners and their heirs who rent real estate that they got to the interest.

In the UAE, the entire fund is new - up to 20 years. Investors bought objects for real money, and did not receive it from the state or relatives, so there are no prerequisites for changes for changes.

Here we explained how investors calculate the real profitability from renting an apartment in Dubai and what expenses the agents are silent about.

 

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