Rental yield is the first number most Dubai property investors look at. It tells you how much rent a property earns compared with what it costs. But the headline figure in a listing is usually the gross yield, and what lands in your pocket is lower. This guide explains the difference and shows how to calculate both.
Figures below are typical ranges from public market guides as of October 2026. Check current data for the specific building you are considering.
What is rental yield?
Rental yield is your annual rent as a percentage of the property’s cost. A higher yield means more rent for each dirham you invest. It does not include price growth, so it is only part of your total return.
Gross yield vs net yield
Gross yield = annual rent divided by the purchase price, multiplied by 100. It ignores all costs.
Net yield = (annual rent minus yearly running costs) divided by the purchase price, multiplied by 100. It reflects what the property really earns after costs.
Some investors divide by the total purchase cost, including fees, instead of the price. That gives a lower, more realistic figure.
What is a typical yield in Dubai?
Market reports put the average gross yield across Dubai at around 6% to 7% in 2026, with a wide spread by area. Some budget areas show gross yields above 8%, while premium areas such as Downtown Dubai are often closer to 5% to 6%. A common rule of thumb is that net yield is about 1.5 to 2.5 percentage points lower than gross yield. For a comparison of areas, see our guide to the best areas to invest in Dubai.
Costs that reduce your yield
- Service charges: paid every year to the building’s management, commonly around AED 8 to 35 per square foot depending on the community.
- Property management fees: often 5% to 10% of rent if you hire a manager.
- Maintenance: a yearly allowance for repairs and wear.
- Vacancy: the time between tenants. Many investors allow about one month a year.
- Insurance and other costs.
A worked example
Take an apartment priced at AED 1,500,000 that rents for AED 90,000 a year. It is 750 square feet with a service charge of AED 15 per square foot. These numbers are examples, not a quote.
| Item | Per year (AED) |
|---|---|
| Rent | 90,000 |
| Rent after 5% vacancy | 85,500 |
| Service charge (750 sq ft x 15) | -11,250 |
| Management fee (5%) | -4,275 |
| Maintenance | -2,500 |
| Insurance and other | -1,000 |
| Net operating income | 66,475 |
- Gross yield: 90,000 / 1,500,000 = 6.0%
- Net yield: 66,475 / 1,500,000 = about 4.4%
If you also count about AED 109,000 of one-off purchase costs, the net yield on your full cost drops to roughly 4.1%. The gap between 6.0% and 4.1% is why it matters to calculate carefully.
Do not forget your mortgage
If you finance the purchase, your mortgage payment changes your monthly cash flow. A property can show a good yield and still lose money each month after the loan payment. Our guide to non-resident mortgages in Dubai explains what to expect, and the calculator below shows cash flow after the loan.
How to get realistic rent figures
- Ask for recent rental contracts for the same building and size, not just current asking prices. Asking rents are often noticeably higher than what tenants actually pay.
- Check the real service charge for the building.
- Allow for vacancy and repairs, especially in older buildings.
- Compare short-term rental claims with long-term rents, and check the rules and costs of holiday letting.
Frequently asked questions
What is a good rental yield in Dubai?
It depends on the area and property type. Gross yields around 6% to 8% are common for apartments, with villas usually lower. A good yield is one that still looks healthy after costs and fits your goals.
Is gross or net yield more important?
Net yield, because it shows what the property earns after costs. Use gross yield only to compare listings quickly.
Do rents in Dubai include service charges?
No. Service charges are paid by the owner, which is why net yield is lower than gross yield.
Calculate your own yield
Our free Excel calculator works out gross yield, net yield and monthly cash flow after your mortgage from your own numbers. If you would like help reviewing a property, contact us, or read our guide to buying property as a foreigner.
This article is for general information only and is not financial, legal or tax advice. Fees, rates and rules change, so check current terms with the relevant authority, your bank or a licensed adviser.