UAE buy-to-let yield calculator: rental return on your mortgage
- Gross rental yields in Dubai range from 5% to 8% depending on location and property type, with studio and one-bedroom apartments typically yielding more than larger units (source: published rental market data, June 2026).
- On a AED 1M property with a 30% deposit and a 4.25% mortgage over 25 years, the monthly mortgage cost is AED 3,793; a 6% gross yield generates AED 5,000/month in rent, giving pre-cost cashflow of AED 1,207/month.
- Net yield after service charges, management fees and vacancy typically runs 1.5 to 2.5 percentage points below the gross yield figure.
A UAE buy-to-let yield calculator compares rental income against the mortgage cost and running expenses to show whether a property generates positive cashflow. On a AED 1M Dubai property bought with a 30% deposit, the AED 700K mortgage at 4.25% over 25 years costs AED 3,793/month. At a 6% gross yield, the property generates AED 5,000/month in rent, leaving AED 1,207/month before service charges and management fees (source: PMT formula, rental market data, June 2026).
TL;DR: the key figures
- Gross yield formula: (annual rent / property price) × 100.
- Dubai gross yields: studios 6-8%, 1-bed apartments 5-7%, 2-bed apartments 5-6%, villas 3-5% (source: rental market data, June 2026).
- Mortgage cost on AED 700K (70% of AED 1M) at 4.25%, 25 years: AED 3,793/month.
- Net yield after costs: typically 1.5 to 2.5 points below gross yield.
- Expat LTV cap for investment properties: 65-70% (30-35% deposit required).
- Rental income does not count toward DBR by most UAE banks; mortgage must be affordable on salary alone.
How to calculate gross and net yield
Two yield figures matter for buy-to-let analysis: gross yield and net yield.
Gross yield is the simplest measure:
Gross yield = (Annual rent ÷ Property purchase price) × 100
Example: a property bought for AED 1M and let for AED 75,000/year has a gross yield of 7.5%. This figure ignores all running costs and is the headline figure most commonly quoted in property listings and market reports.
Net yield is the more useful figure because it accounts for the costs of running the property:
Net yield = ((Annual rent − Annual running costs) ÷ Property purchase price) × 100
On the same AED 1M property earning AED 75,000/year, typical annual running costs might include:
- Service charges: AED 12,000 (AED 12/sqft on a 1,000 sqft apartment)
- Property management fee: AED 6,000 (8% of AED 75,000)
- Insurance: AED 2,400
- Maintenance provision: AED 3,000
- Vacancy allowance (5% of rent): AED 3,750
Total running costs: AED 27,150. Net income: AED 75,000 − AED 27,150 = AED 47,850. Net yield: 4.79%.
So a 7.5% gross yield becomes 4.79% net, a gap of 2.71 percentage points. This is broadly typical for a Dubai apartment in a managed building.
Cashflow calculator: mortgage vs rental income
The cashflow calculation compares monthly rental income against monthly mortgage payment. A positive number means the rent covers the mortgage and leaves surplus before non-mortgage costs. Source: PMT formula, rental market estimates, June 2026.
| Property price | Deposit (30%) | Mortgage (70%) | Monthly payment (4.25%, 25 yrs) | Rent at 6% gross yield | Pre-cost cashflow |
|---|---|---|---|---|---|
| AED 600,000 | AED 180,000 | AED 420,000 | ~AED 2,276 | ~AED 3,000 | +AED 724 |
| AED 800,000 | AED 240,000 | AED 560,000 | ~AED 3,034 | ~AED 4,000 | +AED 966 |
| AED 1,000,000 | AED 300,000 | AED 700,000 | ~AED 3,793 | ~AED 5,000 | +AED 1,207 |
| AED 1,500,000 | AED 450,000 | AED 1,050,000 | ~AED 5,689 | ~AED 7,500 | +AED 1,811 |
| AED 2,000,000 | AED 600,000 | AED 1,400,000 | ~AED 7,585 | ~AED 10,000 | +AED 2,415 |
Source: PMT formula, 4.25% annual rate, 25-year term. 6% gross yield assumption. Pre-cost cashflow does not deduct service charges, management fees, insurance or vacancy. Net cashflow will be lower by AED 1,500 to AED 3,000/month depending on property type and building.
How different yield levels compare against mortgage cost
At what yield does the rental income cover the full mortgage payment on a 70% LTV loan at 4.25%? The answer depends on the term. Source: PMT formula, June 2026.
| Gross yield | Annual rent (AED 1M property) | Monthly rent | Mortgage payment (AED 700K, 4.25%, 25 yrs) | Pre-cost monthly cashflow |
|---|---|---|---|---|
| 4.0% | AED 40,000 | AED 3,333 | AED 3,793 | −AED 460 |
| 4.5% | AED 45,000 | AED 3,750 | AED 3,793 | −AED 43 |
| 5.0% | AED 50,000 | AED 4,167 | AED 3,793 | +AED 374 |
| 5.5% | AED 55,000 | AED 4,583 | AED 3,793 | +AED 790 |
| 6.0% | AED 60,000 | AED 5,000 | AED 3,793 | +AED 1,207 |
| 7.0% | AED 70,000 | AED 5,833 | AED 3,793 | +AED 2,040 |
The break-even gross yield for a AED 700K mortgage (70% of AED 1M) at 4.25% over 25 years is approximately 4.5%. Below that, the rent does not cover the mortgage. At 6%, there is around AED 1,200/month surplus before running costs. A well-managed property in a high-yield Dubai area (International City, Dubai Silicon Oasis, JVC) can reach 7% to 8% gross yield, generating meaningful positive cashflow even after all costs.
The deposit effect on cashflow
A larger deposit means a smaller mortgage and better monthly cashflow, at the cost of more capital tied up in the property. Expats must put down at least 30% on buy-to-let properties (CBUAE 70% LTV cap for investment purchases). Some banks require 35% for expats on certain property types.
| Deposit | Mortgage (AED 1M property) | Monthly payment (4.25%, 25 yrs) | Monthly rent at 6% | Pre-cost cashflow |
|---|---|---|---|---|
| 25% (AED 250K) | AED 750,000 | ~AED 4,064 | AED 5,000 | +AED 936 |
| 30% (AED 300K) | AED 700,000 | ~AED 3,793 | AED 5,000 | +AED 1,207 |
| 35% (AED 350K) | AED 650,000 | ~AED 3,522 | AED 5,000 | +AED 1,478 |
| 40% (AED 400K) | AED 600,000 | ~AED 3,251 | AED 5,000 | +AED 1,749 |
Source: PMT formula. 6% gross yield, AED 1M property. The 25% deposit row is for UAE nationals (80% LTV on primary residence, but note BTL LTV rules differ). Most expats are limited to 70% LTV (30% deposit minimum) on buy-to-let.
What the UAE buy-to-let mortgage does not cover
The mortgage application for a buy-to-let property in the UAE is assessed on your salary DBR, not on the rental income. Most UAE banks do not count expected rental income as qualifying income for the purpose of calculating whether you can afford the mortgage. This means:
- Your existing salary must support the additional mortgage payment within the 50% DBR cap for expats (60% for UAE nationals).
- On AED 20,000 salary with no other debts, the 50% DBR cap allows AED 10,000/month in total debt payments. An existing mortgage of AED 5,000/month leaves AED 5,000 capacity for a buy-to-let mortgage, supporting roughly AED 922,000 in buy-to-let borrowing at 4.25% over 25 years.
- Upfront costs also require cash beyond the deposit: DLD fee (4% of property price), agent fee (2%), bank processing fee (0.5-1% of loan), and valuation fee. On a AED 1M property, these add roughly AED 75,000 to AED 85,000 on top of the AED 300,000 deposit.
Check your full eligibility including DBR for a second property via the eligibility wizard.
“Is buy-to-let in Dubai worth it with a mortgage in 2026?”
It depends on what you mean by “worth it.” If you mean monthly cashflow positive: yes, for well-located properties yielding 6%+ gross bought with a 30% deposit at current mortgage rates. Most smaller apartments in Dubai Silicon Oasis, International City, JVC, and similar high-yield areas clear this bar. The numbers above show roughly AED 1,200/month pre-cost surplus on a AED 1M property at 6% yield and 70% LTV at 4.25%.
If you mean total return: you need to factor in capital growth (or the risk of none), the illiquidity of the asset, the management burden, and the opportunity cost of the deposit. A 30% deposit on a AED 1M property is AED 300,000 plus roughly AED 80,000 in transaction costs. That is AED 380,000 generating a net yield of around 4% to 5% annually and hopefully some capital appreciation. Whether that beats alternative uses of the same AED 380,000 is a personal decision that goes beyond the mortgage calculation. The calculator and the rental yield calculator help with the numbers side of it.
Bottom line
A UAE buy-to-let yield calculator shows whether a mortgaged investment property generates positive cashflow. On a AED 1M Dubai property bought with a 30% deposit and mortgaged at 4.25% over 25 years, a 6% gross yield produces approximately AED 1,207/month in pre-cost cashflow. Net of service charges, management fees and vacancy, the surplus typically falls to AED 200 to AED 700/month for a well-managed apartment in a high-yield area. The DBR rule means you must qualify on salary alone, not rental income. Run your specific property on the mortgage calculator to check the numbers before committing.
Frequently asked questions
What is a good rental yield on a UAE buy-to-let property?
Gross rental yields in Dubai typically range from 5% to 8% depending on location and property type, with studios and smaller apartments generally yielding more than larger villas (source: rental market data, June 2026). A gross yield above the mortgage rate means the rent covers at least the interest component before operating costs. Net yields after costs typically run 1.5 to 2.5 percentage points below gross yield.
How do I calculate the gross yield on a UAE investment property?
Gross yield = (annual rent divided by property purchase price) multiplied by 100. A property bought for AED 1M generating AED 65,000/year has a gross yield of 6.5%. Net yield subtracts service charges, management fees, insurance and a vacancy allowance. On 6.5% gross, a realistic net yield is 4.5% to 5%.
Can I get a buy-to-let mortgage as an expat in the UAE?
Yes. Expats can get buy-to-let mortgages in the UAE on freehold properties in designated investment zones. The LTV cap for expats on investment properties is 65% to 70%, meaning a 30% to 35% deposit is required. The DBR rules still apply: rental income is not counted as qualifying income by most UAE banks.
Does rental income cover mortgage payments on a UAE buy-to-let?
On a property yielding 6% gross with a 30% deposit, the mortgage at 4.25% over 25 years costs approximately 3% of the property value annually. The rental income at 6% gross covers the mortgage with approximately 3 percentage points to spare before operating costs. After deducting service charges and management fees, most well-located properties with 6%+ gross yields produce positive cashflow.
What costs reduce the net rental yield on a UAE investment property?
The main costs are: service charges (AED 8 to AED 30 per sqft per year), property management fee (8-10% of annual rent), insurance (AED 100-300/month), maintenance provision, and vacancy allowance (budget 5-8% of annual rent). These typically reduce a 6% gross yield to a 4% to 4.5% net yield.
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