The property market in Dubai is on the up due to an increase in projects throughout the sector.

The Dubai Land Department has revealed that the volume of investment in local real estate during the first half of 2016 reached $7.6 billion. As well as economic stability, international investors are being attracted to by the opportunity to receive a stable annual rental yield of 5 to 7% for residential property in the Emirate.

Dubai market recovery looking promising

Investors, which are coming from India, Saudi Arabia, Pakistan and the UK among others, are on the lookout for residential properties, apartment hotels and offices.

While prices for residential property in Dubai dropped by 15% between 2014 and 2016, experts are now suggesting that that the market has begun to recover.

The return on investments from residential rental property purchases in Dubai currently ranges around 5 and 7% per annum. Individual houses generate a rental income of between 3 and 6%, whereas apartments can yield up to 10% per year.

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Meanwhile the average annual rental yield from serviced apartments is around 8 to 10%. Those apartments located in complexes on the coast can yield up to 0.4% per week if rented out over short term periods.

Finally, returns from commercial property in the Emirate vary dramatically depending on the location, with annual office space rental yields ranging between 5.5 and 8.5%.

Analysts are predicting that returns from commercial property in Dubai, specifically office space, will remain stagnant for the first six months of 2017.