Rental Yield in Dubai (2026): Gross vs Net
Dubai offers some of the highest rental yields of any major city. Here is what the numbers actually look like after costs.
Quick Summary
Gross rental yields in Dubai average 6-9% depending on area and property type. After service charges, vacancy, and management fees, net yields typically land at 4-6%. Still among the best in the world — and all tax-free.
Gross Yield vs Net Yield — What is the Difference?
Gross yield is the simple calculation most portals show. Net yield is what you actually earn after costs. The gap between the two in Dubai is typically 2-3 percentage points.
| Metric | Formula | Typical Dubai Range |
|---|---|---|
| Gross Yield | Annual rent / Purchase price | 6-9% |
| Net Yield | (Annual rent - costs) / Purchase price | 4-6% |
What Costs Reduce Your Yield?
Service Charges
Paid annually to the building management. Ranges from AED 8-25 per sqft depending on building. A 1,000 sqft apartment might cost AED 12,000-15,000 per year.
Vacancy
Most investors budget 1-2 months vacancy per year (8-17% of annual rent). High-demand areas like Marina and Downtown typically see less vacancy.
Property Management Fee
If using a management company, expect 5-10% of annual rent. Worthwhile for overseas investors or those with multiple properties.
Maintenance and Repairs
Budget 0.5-1% of property value annually for maintenance, especially in older buildings.
DEWA and Utilities
Usually paid by tenant for long-term rentals. For short-term/holiday lets, utilities are typically landlord expense.
Ejari Registration
AED 220 per tenancy registration. A minor cost but worth including.
Rental Yield by Area in Dubai (2026)
| Area | Gross Yield | Profile |
|---|---|---|
| Jumeirah Village Circle (JVC) | 7-9% | High yield, affordable entry |
| Dubai South | 7-9% | High yield, Expo/airport growth |
| International City | 8-10% | Highest yield, lower capital growth |
| Business Bay | 6-8% | Balanced yield and growth |
| Dubai Marina | 5-7% | Strong demand, premium prices |
| Downtown Dubai | 4-6% | Lower yield, high capital value |
| Palm Jumeirah | 4-6% | Prestige, lower yield |
| Dubai Hills Estate | 5-7% | Family demand, steady yield |
Worked Example — AED 1.2M Apartment in JVC
Short-Term vs Long-Term Rental Yield
Short-term rentals (Airbnb, holiday lets) can generate 20-40% more gross income than long-term rentals in high-demand areas like Marina, Downtown, and Palm. However, costs are significantly higher — utilities, cleaning, furnishing, platform fees, and more active management. Net yields are often similar or only marginally better than long-term.
Short-term rentals require a DTCM holiday home permit (AED 1,520 for studios/1-beds, AED 2,320 for larger units annually). Not all buildings allow short-term letting — always check with the building management before buying.
Calculate Your Rental Yield
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