What's in this guide
Yield is the number everything gets sold on. It is also the number most easily made to look better than it is — not usually by lying, but by omission.
Here is how to calculate it properly, in a way you can apply to any unit in ten minutes.
1. The gross calculation
Simple, and almost always what you are being quoted:
Two problems with it as a decision tool:
- It ignores every cost of ownership. Service charges alone can consume a fifth of the rent.
- It usually ignores purchase costs. Your true capital outlay is the price plus 6–8% in fees — and yield should be measured against what you actually spent.
2. The net calculation — the one that matters
Net yield subtracts what ownership actually costs:
The annual costs to subtract:
- Service charges — the largest single item. See our service charges guide.
- Property management — if you are not self-managing, a percentage of rent
- Maintenance — budget a realistic annual allowance, not zero
- Void periods — the weeks between tenants, every renewal cycle
- Re-letting costs — agency fees on each new tenancy
- Insurance where applicable
3. A worked example, end to end
| Line | Amount |
|---|---|
| Purchase price | AED 1,500,000 |
| Acquisition costs (~6.5%) | AED 97,500 |
| Total capital deployed | AED 1,597,500 |
| Annual rent | AED 110,000 |
| Service charge (1,200 sq ft @ AED 18) | − AED 21,600 |
| Management (5% of rent) | − AED 5,500 |
| Maintenance allowance | − AED 4,000 |
| Void allowance (~3 weeks) | − AED 6,300 |
| Net annual income | AED 72,600 |
Neither number is wrong. But they answer different questions, and only one of them is the return on your money.
4. The void period nobody models
Most yield calculations assume the unit is let 52 weeks a year, forever. It will not be.
Between tenancies there is a gap — marketing, viewings, contract, move-in. Even a smooth changeover typically costs a few weeks, and during that gap the service charge keeps running.
Where voids are shortest: family-anchored communities. Tenants with children in local schools renew rather than move, because moving means changing schools. That is why Dubai Hills and Motor City often outperform their headline yield in practice.
Where voids are longest: transient tenant profiles and oversupplied segments, where tenants move for a marginally better deal each year.
A realistic allowance is more useful than an optimistic one. If the deal only works at 100% occupancy, it does not work.
5. How to verify the inputs
Every input above can be checked rather than assumed:
- Achievable rent — use DLD transaction data for that specific building via DXB Interact, not the agent's estimate or portal asking prices.
- Service charge — the RERA-approved rate on the DLD Service Charge Index, for that building.
- Acquisition costs — our cost breakdown lists every line item.
- Void risk — ask the building's management or letting agents how quickly units there typically re-let.
That is roughly ten minutes of work. It routinely changes which of two units is the better buy — and it is the difference between investing and guessing.
6. Frequently asked questions
How do you calculate rental yield in Dubai?
Gross yield is annual rent divided by purchase price, times 100. Net yield subtracts annual costs — service charges, management, maintenance and voids — and divides by total capital deployed including acquisition fees.
What is a good rental yield in Dubai?
Gross yields typically range from around 5% in prime central districts to 8% in suburban apartment communities. Net yields generally land 1.5–3 points lower depending on service charges and voids.
Why is my net yield so much lower than the gross figure quoted?
Because gross ignores service charges, management, maintenance, void periods and acquisition costs. On a typical Dubai apartment the gap between gross and net is commonly 2 to 3 percentage points.
Should yield be calculated on the purchase price or total cost?
Total capital deployed — price plus acquisition costs of roughly 6–8%. That is what you actually spent, so that is what the return should be measured against.
How much should I allow for void periods in Dubai?
A realistic allowance rather than zero. Even a smooth tenant changeover typically costs a few weeks, and service charges continue during the gap. Family-anchored communities generally have shorter voids.
Where can I check actual achieved rents in a building?
Dubai Land Department transaction data, accessible through DXB Interact, shows what units in a specific building actually sold and rented for — rather than asking prices on listing portals.
Want this run on a real unit?
Send Ali the building and price. He will pull the approved service charge and the achieved rents, and give you the net figure on total capital — the number that actually matters.
Sources & verification. Service charge rates via the Dubai Land Department Service Charge Index; transaction data published by DLD and accessible through DXB Interact. Worked example is illustrative. Figures reflect the position as at 10 August 2026 and can change — always confirm current rules with the relevant authority before you commit.