Dubai’s office realty yields catching up fast | GulfNews.com

Dubai’s office realty yields catching up fast | GulfNews.com:



"Dubai’s property upturn is no longer just about residential — yields on its commercial property have firmed up at around the 5 per cent mark which could entice investors to give it a serious thought. At a 5 per cent yield for an office in the central business district, Dubai compares favourably against the likes of Munich and Frankfurt (4.5 and 4.7 per cent respectively) and London City (3.75-4.75 per cent) among cities within Europe, Middle East and Africa (Emea), according to Knight Frank’s new report on global capital flows.



Within the Emea territory, Johannesburg’s central business district yields tops, at 8-9 per cent. An improving real estate demand has also driven up yields in Madrid and Barcelona, to 6 and 6.25 per cent respectively.



This year, global transactions on commercial property should be in line for a “at least” 15 per cent growth and take the total past $600 billion (Dh2.2 trillion). Last year, the gross of $536.7 billion was the highest on commercial realty since 2007, Knight Frank records."



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