Why are office rental yields in Dubai currently higher than residential yields

Office rental yields are outperforming residential yields because of the regulatory landscape and supply constraints. Mainland companies must secure physical office space to grant employment visas which creates a non negotiable demand for commercial…

The full explanation

Office rental yields are outperforming residential yields because of the regulatory landscape and supply constraints. Mainland companies must secure physical office space to grant employment visas which creates a non negotiable demand for commercial real estate. Combined with the fact that new office supply is limited compared to the massive influx of residential towers landlords can command higher premiums and secure longer lease terms resulting in superior net returns for commercial investors.

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