22nd March 2013

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Jumeirah Park villas are available for rent in Dubai's latest residential community. We thought it would be useful for landlords and potential buy-to-let clients if we wrote an article about rental yields.
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The two main ways that property owners make money from their real estate assets are capital appreciation and rental income. This article focuses on the latter - the rental income for Jumeirah Park villas.

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Rental income is what a tenant pays to a landlord for living in their property. The amount can grow or decrease over time depending on market conditions. The Dubai rental market is currently experiencing a growth phase whereby rents have been increasing and look like continuing to do so for the foreseeable future, especially in prime location villa communities.

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To find the 'net rental income' a landlord needs to deduct costs such as mortgage payments, maintenance costs, service fees and building insurance from the gross rental amount they receive from their tenant. The figure they are left with is their net rental income.

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The 'net rental yield' can then be calculated by dividing the net rental income by the price paid for the property. For example, a net rental income of AED 225,000 divided by a villa price of AED 4,500,000 gives a net rental yield of 0.05 or 5% per annum.

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The rental yield for a Jumeirah Park villa will vary over time in relation to any changes in either the rental amount or price paid for a villa.

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Jumeirah Park villas have been bought at a range of varying prices since their initial launch by Nakheel in September 2006. Therefore, every Jumeirah Park owner will need to make individual calculations to find their current or expected rental yield.

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In our next news article we will discuss capital appreciation and relate this to the performance of villa prices in Jumeirah Park.

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Property Boutique has some superb 4 Bed Regional and 4 Bed Legacy villas for rent in Jumeirah Park, including villas with fully landscaped gardens and a few exceptional lake facing homes.