Investment

Dubai Rental Yield Calculator

Gross yield is the easy number. Net yield after service charges, management and vacancy is the one that matters.

Result
Gross yield7.0%
Vacancy costAED 6,058
Service chargeAED 18,000
Management + maintenanceAED 9,250
Net annual incomeAED 71,692
Net yield4.8%

Gross yield ignores every cost of ownership. Net yield here deducts service charges, management, maintenance and a vacancy allowance. It does not deduct mortgage interest — if you are financed, subtract that separately to get cash-on-cash return.

What you need to know

Almost every yield figure quoted in Dubai marketing is gross: annual rent divided by purchase price. It is a useful headline and a poor decision-making tool, because it ignores everything it costs to own the asset.

Service charges do the most damage, and they vary enormously — from around AED 10 per sqft in mid-market buildings to well over AED 30 in branded towers with extensive amenities. On a small unit a high service charge can absorb a fifth of the rent.

Then add management at around 5% of rent if you are not self-managing, maintenance, and a realistic vacancy allowance. Two to four weeks a year is normal between tenancies. A property advertised at 8% gross frequently lands closer to 5% net, which is still a decent return but a very different one.

Common questions

What is a good rental yield in Dubai?

Gross yields commonly run 5–8% depending on community and unit type. Net yields after all costs typically land 2–3 percentage points lower.

What is the difference between gross and net yield?

Gross is rent divided by price. Net deducts service charges, management, maintenance and vacancy — the figure you actually receive.

Do service charges affect yield much?

Substantially. On smaller units a high service charge can consume 20% or more of annual rent.

Want these numbers checked against a real property?

Send us the unit you are looking at and we will run the actual figures — service charge for that building, current market rent, and what comparable units transacted at.

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