Rental Yield and ROI on Dubai Property

Gross yield is annual rent divided by the price; net yield deducts service charges, maintenance, vacancy and management. Return on investment also counts purchase costs, finance and any change in value. Always compare net figures based on real registered rents.

Updated 27 October 2026 · 1 min read

Gross yield = annual rent ÷ price. Net yield = (annual rent − yearly costs) ÷ (price + purchase costs). The net figure is the one to compare.

Worked example

Item Example
Purchase price AED 1,500,000
Purchase costs (about 7%) AED 105,000
Annual rent AED 110,000
Service charges AED 15,000
Maintenance and insurance AED 5,000
Vacancy (one month) AED 9,000
Gross yield 110,000 ÷ 1,500,000 = 7.3%
Net yield (110,000 − 29,000) ÷ 1,605,000 = 5.0%

The figures are illustrative only. Replace every line with real numbers for the specific unit.

Getting the inputs right

  1. Rent

    Use recent registered leases for the same building and layout, not asking rents. Dubai Land Department data and the rental index help.

  2. Service charges

    Check the official service charge rate for the building per square foot.

  3. Vacancy and letting costs

    Allow for time between tenants and any agency fee for finding a tenant.

  4. Finance

    With a mortgage, look at cash-on-cash return: net income after interest divided by the cash you invested.

  5. Capital growth

    ROI also includes any rise or fall in value when you sell, minus selling costs. Treat growth as uncertain.

Common mistakes to avoid

  • Comparing a gross yield in one building with a net yield in another.
  • Using asking rents rather than achieved rents.
  • Ignoring purchase costs in the denominator.

This guide is general information, not legal, tax, financial or lending advice. Fees, rules and procedures change and depend on the property, the parties and the contract. Confirm current details with the relevant authority and qualified advisers before acting.

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Common questions

How do I calculate rental yield in Dubai?

Gross yield is annual rent divided by the purchase price. Net yield deducts yearly costs such as service charges, maintenance and vacancy, and divides by the price plus purchase costs.

What is a good rental yield in Dubai?

It depends on the area and property type. Compare net yields of similar properties rather than relying on a single benchmark.

Where do I find real rents?

Use registered rental data from the Dubai Land Department and recent leases in the same building, rather than asking prices on portals.

Keep reading

Sources

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