Dubai's appeal to income investors is straightforward: gross yields that are structurally higher than most mature markets, and no UAE tax on residential rental income. What that turns into for you depends on the building you buy, the charges attached to it and how it is let.
This page explains how we underwrite income, so you can hold any figure we publish to the same standard.
How yield is calculated
Gross yield is annual rent divided by purchase price. Net yield deducts service charge, management, vacancy and maintenance. In Dubai the spread between the two is commonly 1.5 to 2.5 percentage points, driven mostly by the service charge.
Service charges: the number that decides your net
Service charges are set per building, commonly quoted in the AED 12–25 per square foot per year range. An amenity-heavy tower with pools, gyms and concierge sits at the top of that range; a simpler building sits near the bottom. On a 900 sq ft apartment the difference between the extremes is meaningful income.
District and unit-size effects
Smaller units in well-connected mid-market districts have generally produced the highest gross yields, because rent per square foot rises as unit size falls. Larger prime units generally produce lower yields and have historically shown stronger capital appreciation and deeper resale demand.
Long-term lease or short-term letting
A long-term lease gives predictable annual rent, often paid in one to four cheques. Licensed short-term letting can raise gross income in tourist districts but adds management cost, seasonality and regulatory obligations. We model both and show the net outcome side by side.
Verify before you commit
Insist on achieved comparable rents from the last twelve months, the current service charge in AED per square foot, and confirmation of whether a figure is gross or net. Then run it yourself in our calculator with a vacancy allowance you are comfortable with.
Property investment involves risk. Rental income, capital appreciation and projected returns are estimates and are not guaranteed. Figures shown are based on developer payment terms and comparable market rents at the date stated, and may change. This is information, not financial advice.
