Dubai still offers lucrative rental returns: Arif Mubarak

DUBAI: Dubai Asset Management, a subsidiary of Dubai Holding, is looking to expand its portfolio both organically and inorganically with focus on Dubai as the emirate still offers lucrative returns on rentals, a senior official said.

"We are definitely growing our portfolio in different ways as we are an investment institutional-driven organisation. Our growth is driven by market demand and supply and our customer base comprises of both corporate and individuals. We own, manage and operating one of the largest rental portfolios in Dubai," said Arif Mubarak, chief executive officer, Dubai Asset Management. Dubai Asset Management owns and manages 10 communities in different categories including upscale villas, medium affordable housing, staff accommodation and corporate housing. Around 100,000 residents live in those communities.

"We have one of the largest occupancy rates in Dubai at around 95 per cent across our portfolio with a better than market average stay of tenant. Market average stay is 3.5 years while our customers stay average is 4.5 years," said Mubarak in an interview with Khaleej Times. Dubai Asset Management recently announced its foray into the short-term rental market also through a partnership with HiGuests.

Mubarak revealed that expanding outside Dubai is an option but the firm is not focusing on that because he still sees Dubai as a lucrative market in terms of rental returns.

According to real estate consultancy CBRE, Dubai offer one of the best rental returns and is ranked among the world's top-10 cities where investments in property can get handsome gains. "We are looking for residential assets that are complementary to our existing assets. They could be villas and apartments but residential for rentals. There are growth opportunities in the market as long as we manage growth right. Because growing without asset management mindset and skills, we feel it will not take use anywhere," he added.

Despite oversupply concerns in the Dubai real estate, Mubarak believes there are opportunities as well. "It is really looking at a right opportunity at right moment. There is a drop in rental rates but we continue to see healthy pricing,"

"We have sizable market share and we get special index from Real Estate Regulatory Authority (Rera) for our communities. Since our communities are bit different than the neighbouring rental market, the index gives us a good advantage because of our amenities and accordingly our prices continue to be slightly in a good rate in comparison to market which we see acceptable by people and accordingly we see demand in our own communities very acceptable to the market," Mubarak added.