Rental Yield & ROI
Your real yield, after the costs portals ignore
Dubai headline yields of 6 to 8 percent are gross figures. Between service charges, management, vacancy and upkeep, the number an owner actually banks is materially lower, and service charges alone can move net yield by two full points between buildings. This calculator does the honest version.
Service charges are set per building by the DLD index, and towers in one community can differ by double. Always check the exact building's rate before you buy; the presets here are honest community ranges, not promises.
Gross yield
7%
Net yield
5.06%
Figures checked July 30, 2026. Results are estimates for orientation, not financial, legal or immigration advice. Fees and rules change and individual cases differ; verify current figures with the Dubai Land Department, your bank and your own advisors before committing.
Related tools and pages
Gross yield vs net yield in Dubai
Gross yield is annual rent divided by purchase price, and it is the number every listing quotes because it is the biggest one available. Net yield deducts what ownership actually costs: building service charges, property management (typically 5 to 8 percent of rent for full management), a realistic vacancy allowance between tenancies, and maintenance.
In well-managed Dubai buildings the gap between gross and net commonly runs 1.5 to 2 percentage points. A 7% gross apartment with AED 18 per sqft charges is a very different investment from a 7% gross apartment at AED 9 per sqft.
Service charges: the deduction that varies most
Service charges are levied per square foot per year at rates approved building by building under the DLD service charge index. As of 2026, typical ranges run from around AED 8 to 14 in JVC, AED 12 to 20 in Dubai Marina, and AED 17 to 40 or more in Downtown, with branded and ultra-prime towers reaching AED 55 to 68. Villas generally run cheaper per square foot than apartments.
Because the rate attaches to the building, not the area, the only reliable figure is the one on the building's own DLD-approved budget. Ask for it before you offer; a seller's agent has it.
Cash-on-cash: the financed investor's real number
If you finance the purchase, yield on price matters less than the return on the cash you actually put in: down payment plus transaction costs. This calculator computes net income after mortgage payments and divides it by that invested cash. Leverage amplifies both directions: a positive spread between net yield and your mortgage rate lifts the cash-on-cash return, a negative one produces monthly top-ups.
Rental yield: common questions
What is a good rental yield in Dubai?+
Affordable communities like JVC gross 7 to 8.5 percent; prime beachfront and Downtown addresses typically gross 4 to 6 percent but tend to carry stronger capital values. Net of costs, a well-bought apartment commonly nets 4.5 to 6.5 percent. Compare like with like: always net against net.
Is rental income taxed in Dubai?+
There is no personal income tax on rental income in the UAE. Your home country may still tax it depending on your tax residency, which is a question for a tax advisor, not a calculator.
What vacancy allowance is realistic?+
Two to four weeks a year is a sensible planning figure for a well-priced unit in a liquid community. Chronically over-priced units and niche layouts sit longer, and one extra empty month costs roughly 8 percent of the year's rent.
Who pays service charges, the landlord or the tenant?+
The owner. Tenants pay their own utilities and the housing fee via DEWA, but the building service charge is a landlord cost, which is exactly why it belongs in every net yield calculation.