Yield is the number every Dubai brochure leads with and the number most often misrepresented. A quoted 9% is usually gross, usually based on an asking rent rather than an achieved rent, and usually before service charges that can absorb a fifth of the income.
Here is how we assess it, and how you can sanity-check any figure you are shown — including ours.
Gross yield vs net yield
Gross yield is annual rent divided by purchase price. Net yield deducts service charges, management fees, vacancy allowance, maintenance and, for short-term letting, platform and cleaning costs. In Dubai the gap between gross and net is typically 1.5 to 2.5 percentage points.
Because the UAE does not tax rental income, a Dubai net yield is closer to a true take-home figure than a UK net yield of the same headline size.
The five deductions that decide your net
Service charge is the big one and varies enormously — a simple mid-rise building may sit near the bottom of the AED 12–25 per square foot range while an amenity-heavy waterfront tower sits at the top.
- Service charge per square foot, per year
- Letting and management fee (commonly 5–8% of annual rent)
- Vacancy allowance between tenancies
- Maintenance and chiller charges where not tenant-paid
- Short-term letting costs, if you use that model
How district affects income
Higher-yield income tends to come from mid-market apartment districts with strong tenant demand and moderate service charges. Prime waterfront addresses generally produce lower gross yields with stronger capital-growth history and deeper resale demand.
There is no district that is best for everyone — it depends on whether you are optimising income now or value later.
How to verify a quoted yield
Ask for achieved rents for comparable units in the same building over the last 12 months, ask for the current service charge in AED per square foot, and ask whether the figure is gross or net. Any advisor who cannot produce all three is quoting a marketing number.
Model it with your own assumptions
Our investment calculator takes purchase price, expected rent, service charges, transaction costs and holding period, and returns gross yield, net yield, initial cash requirement and estimated total return. Every output is an estimate.
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.
