Prime rental yield in Dubai International Financial Centre (DIFC) is much higher than some of the most sought after commercial destinations in the world, according to a report.

The current prime yield in DIFC, as per CB Richard Ellis, is 8.25 per cent in the second quarter compared to locations such as London City (5.50 per cent), London West End (4.25 per cent) and Birmingham (5.75 per cent).
Prime rent in DIFC during the period was close Dh886 per square feet per annum.

Keiv, Ukraine, topped the list with 14 per cent rental yield during the second quarter with prime rent being $275 per square metre per annum, while Moscow followed with 11 per cent rental yield and prime rent of $875 per square feet per annum.
No CBRE official could be reached for comment.

In June, the real estate consultancy said Dubai is expected to see another 20-30 million square foot of office space being added in the emirate by 2012.
According to Jones Lang LaSalle, the total office stock as at the end of the second quarter was approximately 48 million square feet.
Average rents in the central business district area decreased by 8 per cent to around Dh200 per square feet during the second quarter with average rents having fallen by between 45 and 60 per cent since their peak in the middle of 2008, JLL said.

Emirates Business 24/7
July 18, 2010