Area-level rental yields are published gross. What is left once service charges, management and insurance are deducted? We explain with area bands and a worked example.
In Dubai, a property's return is quoted as two different numbers: the gross rate shown in listings and the net rate left after expenses. The gap is usually 1 – 2 points and widens further in buildings with high service charges. This guide explains where the gap comes from and how to build your own figure.
Gross yield is annual rental income divided by the property price. Net yield deducts operating costs from rental income and divides not by the list price but by the total cost including fees. On the same property, the two numbers separate like this:
| Line | Example — JVC 1-bed · 700 sqft | Explanation |
|---|---|---|
| List price | AED 1,100,000 | Purchase price |
| Annual gross rent | AED 93,500 | ~AED 7,800 per month · gross yield 8.5% |
| These lines describe not the JVC average but a specific 1-bed around AED 1,100,000; the area as a whole includes studios, so the average rent is lower. | ||
| Service charge (AED 14/sqft) | −AED 9,800 | Paid yearly to building management |
| Management + insurance | −AED 3,200 | Property management and policy |
| Annual net rent | AED 80,500 | After expenses |
| Net yield (on list price) | 7.3% | The common presentation |
| Net yield (on AED 1,149,500 including fees) | 7.0% | The figure we use |
Don't forget a vacancy allowance. Tenancy contracts in Dubai are usually annual and paid upfront or in a few cheques; but a 2 – 4 week gap can occur when tenants change. We model this allowance separately in our projections — an ignored gap can lower net yield by up to half a point.
Central and newly developed areas (Downtown, Palm Jumeirah, Dubai Islands, Maritime City) stand out for capital appreciation; established inner communities (JVC, Arjan, Al Furjan, Majan) stand out for rental yield. They do different jobs: in premium and new areas the yield rate drops markedly, while the property is held as an asset. The rates below are gross; service charges and operating costs have not been deducted.
These are area rental yields calculated from completed lease transactions registered with the Dubai Land Department — read on 7 September 2026, data period 1 January – 7 September 2026. Because the source rates are given as whole numbers, each band allows a ±0.5 point margin. The table shows the areas where our portfolio is concentrated; the ROI Calculator offers 34 areas.
| Area | Gross rental yield | Payback period |
|---|---|---|
| Jumeirah Village Circle | 7.5 – 8.5% | 12 – 13 years |
| Arjan | 7.5 – 8.5% | 12 – 13 years |
| Business Bay | 6.5 – 7.5% | 13 – 15 years |
| Dubai Hills | 6.5 – 7.5% | 13 – 15 years |
| Al Furjan | 6.5 – 7.5% | 13 – 15 years |
| Dubai Motor City | 6.5 – 7.5% | 13 – 15 years |
| Emaar South | 6.5 – 7.5% | 13 – 15 years |
| Dubai Sports City | 6.5 – 7.5% | 13 – 15 years |
| Dubai Creek Harbour | 6.5 – 7.5% | 13 – 15 years |
| Majan | 6.5 – 7.5% | 13 – 15 years |
| Maritime City | 4.5 – 5.5% | 18 – 22 years |
| Dubai Islands | 3.5 – 4.5% | 22 – 29 years |
Most of our portfolio sits in the 6.5 – 8.5% gross band; once service charges, management and insurance are deducted, net yield typically falls to the 6 – 8% band; depending on the area and service charge, it can be below or above that band. In new development areas such as Dubai Islands and Maritime City the gross rate falls to as low as 4-5% — there the expectation is capital appreciation, not rent. In premium areas such as Downtown and Palm the net figure can sit below the band, and above it in inner areas with low service charges. At the offer stage we give the calculation project by project, with the current service charge schedule, in writing.
Talking about gross yield is easy. We don't give a net figure without seeing the service charge schedule.
The two letting models differ in both return and risk. We discuss which suits you by calculating it for the specific property.
| Long-term letting | Short-term (holiday home) | |
|---|---|---|
| Contract | Annual, registered with Ejari | Daily/weekly, via a DET-licensed operator |
| Gross yield | More predictable | Can be higher in tourist areas |
| Operating cost | Low | Cleaning, laundry, platform commission, furniture renewal |
| Vacancy risk | Low | Seasonal, significant |
| Your workload | Next to none | Cannot be run without an operator |
Short-term letting can lift the gross figure; but operating and vacancy costs are also markedly higher. We recommend not deciding without comparing both models in the same table, on a net basis.
There is no personal income tax on rental income in the UAE; this is one of the factors that lifts net yield. We recommend reviewing your position in your country of tax residence with your own tax adviser — we do not provide tax advice.
Rental yield: the gap between the published rate and what you keep — as a printable PDF. The guide is free; your email address is used only for delivery and follow-up.
Email me the guideSources: area yield bands and payback periods — 2025-2026 Dubai market data (Dubai Land Department transaction records, CBRE and JLL area reports). We take rent and sale figures not from listing portals but from completed leases, lease renewals and sales registered with the Dubai Land Department. Service charge examples are taken from building management schedules. Figures are as of August 2026 and for information only; they do not promise future returns. Rent levels, service charge schedules and occupancy vary by area, project and period.
The published area rate is gross: annual rent divided by the list price. We deduct service charges, management and insurance from the rent, and divide by the total cost including fees. On the same property the two methods differ by 1 – 2 points.
Yes — for ready properties the building management's current schedule is requested. For off-plan, the service charge is confirmed at handover; in that case we use the developer's projected schedule and/or the actual schedules of comparable buildings. We do not quote a net yield without the service charge schedule.
Rent is paid into your UAE account and transferred from there by bank wire. If you use a property management service, the management company handles collection and transfer. Details: Remote investment guide.
After handover. On off-plan, the construction period brings no income; in return, payment is spread over years and the construction period is usually interest-free. Some developers offer a rental guarantee during construction; if so, you need to see who gives it and its terms in writing in the contract. On a ready property, rent can start from the first month after the title transfer.
No. The band is an indicator based on 2025-2026 market data. Rent levels, occupancy and service charges change; no yield can be promised. At the offer stage the figure must be recalculated with current data.
Let's answer all your questions and pull the projects that fit your budget with their net yields, including all costs.
Free consultationWe will send — to your email address as a PDF. The full guide can also be read on the website.
A free call with our advisers. Not a sales call — we look at your budget and your goals together.
Click for a free consultationCookies
We use cookies to improve our website and measure the results of our ads. Details in our Cookie Policy. You can change this anytime in Preferences.
Choose which cookies we may use. Strictly necessary cookies are always on so the website can work.
Leave your number and your chat opens right away. If the conversation drops, our advisor will get back to you on this number.
Your message is ready — just tap send. If it didn’t open, use the button below.
