Formulas
- Gross yield = annual rent ÷ price × 100
- Net yield = (rent after vacancy − service charges − maintenance − management) ÷ (price + purchase fees) × 100
- Cash-on-cash = (net income − annual mortgage payments) ÷ (down payment + fees) × 100
Example
A AED 1,200,000 one-bedroom apartment rents for AED 85,000 a year. Service charges are AED 15,000, maintenance and insurance AED 3,000, management 5% of rent and 4 weeks’ vacancy per year.
- Gross yield = 85,000 ÷ 1,200,000 = 7.08%
- Rent after vacancy ≈ AED 78,462; net income ≈ AED 56,538
- Purchase fees (cash) ≈ AED 77,980
- Net yield ≈ 56,538 ÷ 1,277,980 = 4.42%
How to improve your yield
- Compare service charges per sq ft between buildings – they vary a lot and directly reduce your return.
- Consider furnished or holiday-home letting (with a DTCM permit) where demand supports it, accounting for higher costs.
- Keep vacancy low with fair pricing; use the RERA index to understand what tenants pay nearby.
- Negotiate purchase fees and the agency commission – they reduce your net yield for years.
Itemise fees with the Dubai property fees calculator and model financing with the mortgage calculator.
Frequently asked questions
What is a good rental yield in Dubai?
Gross yields in Dubai have commonly ranged from about 5% to 8%, with apartments in mid-market areas such as JVC, Dubai Sports City or International City at the higher end and prime villas lower. Net yields after costs are typically 1.5–2.5 percentage points lower.
What is the difference between gross and net yield?
Gross yield is annual rent ÷ purchase price. Net yield subtracts service charges, maintenance, management fees and vacancy from the rent, and divides by the total cost including purchase fees. Net yield is the realistic figure.
What is cash-on-cash return?
For a mortgaged property, it is the yearly cash flow after mortgage payments divided by the cash you actually invested (down payment plus fees). It shows the return on your own money.
Is rental income taxed in the UAE?
There is no personal income tax in the UAE on rental income for individuals. UAE corporate tax can apply to property held through a company. Your home country may tax worldwide income.
Last reviewed: October 2026