Dubai Rental Income Returns in Comparison with The World

If we say that Dubai is the world’s most rental income generator city, then it’s not an exaggeration. Our recent research about this has been proved true. Dubai offers rental income on average of 7.1 per cent, which in comparison, gross rental in Pakistan are 3%, Hong Kong is 2.82 per cent, India 2.22 per cent, Singapore 2.83 per cent and London between 2.72/3.20 per cent.


What exactly is the rental income generator?


According to the Business dictionary,

“The amount of money collected by a landlord from a tenant or group of tenants for using a particular space. Most businesses that lack the funds or credit standing to purchase their premises will have to budget for the cost of paying rental income on a periodic basis that is typically done monthly”.


Customers should not always add to their portfolios a consistent rental income. A stable fluid rental income frees you from stress and worry and is crucial for your success and happiness. Although in Pakistan you get less rent, they offer some good opportunities in conjunction with capital gains, provided you are intelligent enough to invest in the right areas.

Let’s have a look at some of the options we have in Lahore and their rental yields net gains per Annam.


Rental Property Return Trend in Pakistan

It appears, generally, in Pakistan, Commercial properties have a much higher rental yield as compared to Residential. A well located well-constructed house yields about 5 to 6% rent and 7 to 8% annual, at the same time there is some management involved and the building is fancy type it has about 5% annual scorn of building.

A new house, however, is lost 25% of its total value when rented for around six months and is labelled as used. In small houses, the yield is best located near the cities and must be solid and less wooden work. Flats yield around 10 %, but the price increase is minimal.

Please note that the statistics have been calculated on the basis that your property is rented year-round and that no problems with tenants are involved. Tenancy issues in Pakistan are very prevalent, and if we include that the average net wealth profit can decrease by one to two per cent as a risk factor.

Residential apartments are affected by a lack of confidence in developers who promise big returns, but Pakistan is in the end. If you don't buy DHA Lahore Goldcrest, Pentasquare or some other reliable developer with a big name, you are therefore highly vulnerable.


Dubai Rental Income Trends

Many of our international investors have suggested entering the high-rentability property market in Dubai. It took us months of research, discussions with investors in Dubai and some opinion to get into Dubai real estate with one of the biggest real estate developers in Dubai, named "Damac."

The rental rates in Dubai are shocking and are very favourable to someone who is more interested in rental returns. Let’s take a look at some of the figures below:


Rental Property Trends in Dubai

Dubai has come on an incredible number of developed countries with an average of 5.8% and an average of up to 7% when it comes to housing.


UAE vs World

When you invest from Pakistan, rent out is not the only thing you should consider, some of the other factors that really make it worth a lot more in comparison are:

  • The property rent returns are not taxable so that when we say you receive 7 %, you get exactly 7 %. But rental income in Pakistan is taxed by 10-15 %.
  •  The AED is bonded to USD, so you are covered by the average 5% Dollar depreciation of PKR. This is also one of the biggest contributors to Pakistan's significant rental gains.

 A moderate investor in Pakistan faces a dilemma either to invest in residential properties that provide very little rent alongside building depreciation or to invest in cheaper commercials and enter a high-risk area with tenancy challenges.


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