The rental yield for new off plan Business Bay projects is likely to be low because the purchase prices are inflated while rental rates in the area are capped by market competition. If you pay a premium price for the asset but can only rent it out a…
The rental yield for new off plan Business Bay projects is likely to be low because the purchase prices are inflated while rental rates in the area are capped by market competition. If you pay a premium price for the asset but can only rent it out at the prevailing market rate your percentage return drops. Mathematical projections suggest yields could fall below 5 percent for expensive off plan units making them poor cash flow investments compared to other areas.
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