Rental Yields in Dubai: Gross vs Net Explained

Rental yield is your annual rent divided by the purchase price. In Dubai, gross yields commonly run between 5 and 8 percent, but the net figure after service charges is what actually matters.

Gross against net, with a worked example

	Apartment A	Apartment B
Purchase price	AED 1,200,000	AED 1,200,000
Annual rent	AED 90,000	AED 84,000
Gross yield	7.5%	7.0%
Service charge	AED 22,000	AED 10,000
Management and voids	AED 6,000	AED 5,000
Net yield	5.2%	5.75%

Apartment A looks better and earns less. That is the whole lesson: the advertised yield ignores the running costs, and running costs vary more between buildings than rents do.

Where the higher yields tend to sit

Higher gross yields: the mid-market communities. Jumeirah Village Circle, Dubai Silicon Oasis, Arjan, Al Furjan. Lower prices, solid tenant demand.
Moderate yields, stronger capital growth: Downtown, Dubai Marina, Business Bay, Dubai Hills Estate.
Lower yields, trophy assets: Palm Jumeirah, Jumeirah Bay. Bought for the address and long-term value rather than income.

As a rule, the higher the yield, the more of your return depends on the property staying let.

What eats into the return

Service charges

The biggest single deduction, and wildly variable. See our guide to service charges.

Voids

Every empty month costs more than a modest rent reduction. Budget for at least a few weeks between tenancies.

Management

Around 5 percent of annual rent if you use an agent. Effectively unavoidable if you live abroad.

Maintenance

Air conditioning servicing, appliances, repainting between tenants. Small individually, and constant.

How to compare two properties properly

Get the actual achievable rent, not the asking rent of the unit next door.
Get the current service charge in writing.
Deduct management and a realistic void allowance.
Compare the net figures, not the gross.

Before you buy for income

Remember the purchase costs 6 to 8 percent on top of the price, which delays your true break-even by roughly a year of net rent. Our fees guide sets that out.

Ask us to run the numbers on a specific property, or browse what is available.

For ready flats at entry-level prices, see JVC apartments for sale.

See our buying a whole building.

Frequently asked questions

What is a good rental yield in Dubai?

Gross yields commonly run between 5 and 8 percent. What matters is the net figure after service charges, management and void periods, which is often 1.5 to 2 percentage points lower.

Which areas of Dubai have the highest rental yields?

Mid-market communities such as Jumeirah Village Circle, Dubai Silicon Oasis, Arjan and Al Furjan tend to show the highest gross yields, because prices are lower while tenant demand stays solid.

Why is my net yield lower than advertised?

Advertised yields are gross and ignore running costs. Service charges are the largest deduction and vary enormously between buildings, followed by void periods, management fees and maintenance.