Rental Yield

Dubai is known for relatively high gross rental yields compared with many global cities. Apartments in mid-market communities often produce 6-8% gross, while prime villas typically sit around 4-5%. What matters for an investor is the net yield after service charges and other costs, so always look beyond the headline gross figure.

Gross yield is the annual rent divided by the purchase price, expressed as a percentage. Net yield subtracts your annual running costs, service charges, maintenance, management fees and insurance, before dividing by the price. Net yield is the more honest measure of what actually lands in your pocket.

The main ongoing cost is the building service charge, billed per square foot and set by the developer or owners association. Add routine maintenance, any property management fee (often 5-8% of rent), landlord insurance and an allowance for vacancy between tenants. This calculator lets you enter a single annual costs figure covering all of these.

No. Yield measures only the income return. Your total return also depends on capital appreciation, how much the property is worth when you sell, and the transaction costs on entry and exit. To compare property against the stock market on total return, use our Property vs Stocks calculator.