UAE rental yield calculator: work out your gross and net return in 2026
Rental yield measures the income a property earns as a percentage of its price. In Dubai, a AED 1,200,000 apartment renting for AED 90,000 per year gives a 7.5% gross yield. After service charges, management fees, and a vacancy allowance, net yield drops to around 5.1%. Dubai apartment gross yields average 6.5% to 8.5% in 2026, well above most mature markets (source: Global Property Guide). The calculator below works out your exact numbers.
UAE rental yield calculator
Gross yield = annual rent / purchase price. Net yield = (annual rent minus all costs) / purchase price. Costs include service charges, property management fee, maintenance, insurance, and vacancy allowance. This calculator does not include the upfront transaction costs (DLD fee, agency commission) in the denominator; some analysts prefer to include those for a true all-in return. For a financed purchase, the mortgage payment is also a cost that would further reduce income yield. Figures are illustrative; actual costs vary by building and management arrangement.
Gross yield vs net yield: what's the difference?
Gross yield is the simple number: annual rent divided by the purchase price. It is the figure most property listings and portals quote. Net yield is the number that matters, because it tells you what actually lands in your account after paying to keep the property rented and maintained.
The gap between the two is usually 1.5% to 2.5% in Dubai. On a 7.5% gross yield that means a net yield of 5% to 6%. Here are the costs that create the gap.
| Cost | Typical amount | Notes |
|---|---|---|
| Service charges | AED 10 to AED 25/sqft/year | Paid to the building or community. A 1,000 sqft apartment could range from AED 10,000 to AED 25,000/year depending on building quality and amenities. |
| Property management | 8% to 10% of annual rent | If you use a letting agent. Self-managing eliminates this cost but requires hands-on involvement. |
| Maintenance and repairs | 0.5% to 1% of property value/year | Budget for appliance replacements, painting between tenancies, and small works. Older buildings run higher. |
| Building insurance | AED 2,000 to AED 5,000/year | Contents insurance is the tenant's responsibility. Landlord building cover is separate. |
| Vacancy allowance | 2 to 4 weeks/year | Even well-located properties average 2 to 4 weeks between tenancies. Budget 4% to 8% of annual rent. |
Service charge ranges sourced from Banke International Properties and Polaris Corporate Services, 2026.
If you self-manage and your building has low service charges, the gap between gross and net can be under 1.5%. If you pay an agent and own a villa with high charges, the gap can reach 3% or more. The calculator above lets you dial in your actual numbers.
Dubai rental yields by area in 2026
Yield varies significantly across Dubai. Studios and one-bedroom apartments in high-density, affordable communities produce the highest gross yields because rental demand is deep and prices are lower relative to rents. Prime villas in gated communities yield less from rent but have historically delivered stronger capital growth.
| Area / community | Property type | Gross yield | Indicative net yield | Yield band |
|---|---|---|---|---|
| International City | Studio/1BR apt | 9% to 11% | 7% to 9% | High |
| Jumeirah Village Circle (JVC) | 1BR/2BR apt | 8% to 9% | 6% to 7% | High |
| Al Furjan | Studio/1BR apt | 7.5% to 8.5% | 5.5% to 7% | High |
| Dubai Marina | 1BR/2BR apt | 6.5% to 7.5% | 5% to 6% | Mid |
| Business Bay | 1BR/2BR apt | 6.5% to 7.5% | 4.5% to 6% | Mid |
| Downtown Dubai | 1BR/2BR apt | 5.5% to 7% | 4% to 5.5% | Mid |
| Palm Jumeirah | Apartment | 5% to 6.5% | 3.5% to 5% | Mid |
| Arabian Ranches | Villa/townhouse | 4.5% to 5.5% | 3% to 4.5% | Lower |
| Emirates Hills | Villa | 3.5% to 5% | 2.5% to 4% | Lower |
Gross yield ranges sourced from Polaris Corporate Services, Grovy, and Global Property Guide, June 2026. Net yield estimates apply typical service charge and management deductions. Individual properties within each area vary significantly.
The general pattern: the further from the prime waterfront and luxury end, the higher the yield. International City and JVC attract tenants on mid-range budgets with limited alternatives nearby, keeping rents high relative to the purchase price. Downtown and Palm Jumeirah have higher purchase prices driven by prestige and capital-gain expectations, which compresses the yield. Neither end is wrong as an investment strategy; they just offer a different return profile.
Abu Dhabi yields run slightly lower. Abu Dhabi apartments typically yield 5% to 7% gross, with the highest yields in Reem Island and Al Reef. The Abu Dhabi fee structure also differs from Dubai: registration is 2% versus Dubai's 4% DLD, and mortgage registration is capped. Lower upfront costs improve your all-in return on entry. See our Abu Dhabi calculator for the full cost comparison.
Cash-on-cash return: the number that matters for financed buyers
If you buy with a mortgage, gross and net yield still matter, but they don't tell you the full story. The number that matters for a leveraged investment is the cash-on-cash return: what you earn as a percentage of the actual cash you put in.
Here is how it works on a AED 1.2M Dubai apartment with a 25% deposit (40% expat LTV for a second property, or a conservative purchase on a first property above AED 5M).
| Item | Amount |
|---|---|
| Property price | AED 1,200,000 |
| Deposit (25%) | AED 300,000 |
| Upfront fees (4% DLD + 2% agency + misc) | AED 84,000 |
| Total cash invested | AED 384,000 |
| Annual rent | AED 90,000 |
| Annual mortgage payment (AED 900k, 3.70%, 25yr) | AED 55,236 |
| Annual costs (service charges + management + other) | AED 28,200 |
| Annual net cash flow (rent minus mortgage minus costs) | AED 6,564 |
| Cash-on-cash return | 1.7% |
Mortgage payment: AED 900,000 at 3.70% over 25 years, reducing balance. DLD 4% on AED 1.2M = AED 48,000, agency 2% + VAT = AED 25,200, mortgage registration and other fees ~AED 16,800. Annual costs include AED 18,000 service charges, AED 7,200 management (8%), AED 3,000 maintenance, AED 0 insurance modelled as included in service charges. Source: MortgageCompare.ae, June 2026.
The 1.7% cash-on-cash return is not the same as a loss; the mortgage payment is building equity, so your total return includes capital appreciation too. But the cash flow of AED 6,564 per year (AED 547/month) is the actual income after servicing the debt. At today's rates, most financed Dubai buy-to-let properties run close to cash-flow neutral. If you need the property to generate a meaningful monthly income, either use a larger deposit, buy in a higher-yield area, or choose a lower-priced property.
The picture improves significantly after the fixed rate reverts or when EIBOR falls. A 1% drop in EIBOR cuts the mortgage payment by roughly AED 4,600/year on this loan, which nearly triples the annual cash flow. For a comparison of loan structures, see our buy-to-let mortgage guide.
Yield vs capital growth: which metric to optimise?
High-yield areas (JVC, International City) produce strong rental income but tend to see modest capital growth, because the purchase prices are driven up by yield-seeking investors, limiting further price upside. Prime areas (Downtown, Palm) deliver lower yields but have consistently appreciated in value. Neither is objectively better; it depends on whether you need income now or want to build long-term wealth.
A rough 2026 summary:
- Income-first buyers: JVC, Al Furjan, Business Bay apartments. Target 6.5% to 8% gross, 5% to 6% net. Accept modest capital growth.
- Growth-first buyers: Palm Jumeirah, Downtown, Dubai Hills villas. Target 4.5% to 6% gross, 3% to 4.5% net. Exposure to stronger price appreciation over 5 to 10 years.
- Balanced approach: Dubai Marina, Business Bay. Mid-5% to 7% gross, reasonable tenant demand, and decent long-term capital appreciation track record.
Before committing, run the numbers on the specific property. The area average is a guide, not a guarantee. A building with high service charges and poor management can underperform its neighbourhood by 1% to 2% in net yield. The calculator at the top of this page lets you test any combination quickly. For a full comparison before taking a mortgage, see our buy-to-let rates page and the Dubai mortgage calculator.
Frequently asked questions
What is a good rental yield in Dubai?
A gross yield of 6% to 8% is considered good for a Dubai apartment in 2026. High-demand areas like JVC and Dubai Marina typically sit in this range. Net yield after costs is usually 1.5% to 2.5% lower, so 5% to 6% net is strong. Villas yield less (4% to 5.5% gross) but have historically seen stronger capital growth.
How do you calculate rental yield in the UAE?
Gross yield = (annual rent / purchase price) x 100. For a AED 1.2M property at AED 90,000 rent: 90,000 / 1,200,000 x 100 = 7.5%. Net yield deducts service charges, management fees, maintenance, and vacancy from rent before dividing by price. Use the calculator above to enter your exact figures.
Is rental income taxed in the UAE?
There is no personal income tax in the UAE, so rental income is not taxed for private individual landlords (source: UAE Federal Tax Authority). There is also no capital gains tax on UAE property. Corporate tax at 9% applies to businesses above AED 375,000 profit from June 2023, but individual landlords with a small portfolio generally fall outside this. Take professional advice if you hold property through a company or are tax-resident elsewhere.
What costs reduce rental yield in Dubai?
The main costs are service charges (AED 10 to AED 25/sqft/year), property management (8% to 10% of rent if agent-managed), maintenance (0.5% to 1% of property value per year), building insurance, and a vacancy allowance. Together these typically reduce gross yield by 1.5% to 2.5%. Higher-end buildings with more amenities tend to have higher service charges.
What is cash-on-cash return on a UAE buy-to-let?
Cash-on-cash return = annual net income (after all costs including the mortgage payment) / total cash you invested (deposit + transaction costs). It measures what you actually earn on the money you physically put in. At current rates, most financed Dubai buy-to-lets run close to cash-flow neutral, meaning the rent roughly covers the mortgage and running costs, leaving modest surplus income.
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Find the best buy-to-let mortgage rate
The yield calculation is only half the picture. Getting the lowest mortgage rate cuts your annual debt cost and improves your cash-on-cash return. Compare what you'd qualify for today.