Almost every Dubai listing quotes a yield. Almost none says whether it is gross, net, or a theoretical figure built on a rent never achieved in that building.
This guide sets out the calculation we run before scoring an asset, then the ranges we actually observe by area.
The formula, in three lines
Gross yield equals annual rent divided by purchase price. Net yield equals annual rent minus annual costs, divided by purchase price plus acquisition costs.
Only the second formula matters, because it captures what you actually pay at entry and what you do not keep each year.
- Service charges: billed per sqft, paid by the owner, typically AED 10 to 30 per sqft per year.
- Property management: 5 to 8 % of annual rent on long term lets.
- Vacancy: budget at least four weeks a year, more on larger units.
- Maintenance and make good: roughly one month of rent per year on a furnished unit.
Ranges by area
These benchmarks reflect registered transactions and leases. They move with the market, so treat them as orders of magnitude rather than promises.
| Area | Indicative gross | Indicative net | What drives the gap |
|---|---|---|---|
| JVC, Dubai Sports City | 7 to 8 % | 5 to 6 % | Moderate charges, higher vacancy |
| Business Bay, JLT | 6 to 7 % | 4.5 to 5.5 % | Abundant supply, rent negotiation |
| Dubai Marina | 5.5 to 6.5 % | 4 to 5 % | High charges, very strong demand |
| Creek Harbour, City Walk | 5.5 to 6.5 % | 4.5 to 5.5 % | Newer stock, low vacancy |
| Downtown, DIFC | 5 to 6 % | 3.5 to 4.5 % | High price per sqft, prestige |
| Palm Jumeirah | 4 to 5.5 % | 3 to 4 % | Appreciation before income |
Why the studio is not always the right maths
Studios post the highest gross yields. They also carry the fastest tenant turnover, the heaviest service charges per sqft and the toughest resale competition, because it is the most replicated product in the city.
A well located one bedroom typically returns half a point less gross, but stays let longer, resells better and absorbs a market correction more comfortably. Over five years the comparison usually favours it.
Long let or short let
Short term letting can add 2 to 4 points of gross yield in tourist locations, chiefly Marina, JBR, Downtown and the Palm. It requires a DTCM licence, an operator, sustained occupancy and active management.
Once operator commission, seasonality and charges are included, the real net gap usually narrows to about 1.5 points. It is a yield strategy, not a shortcut.
How WAH reads yield
Yield feeds the WAH Score, but never decides alone. An asset at 8 % gross in a saturated tower can score below an asset at 6 % at a rare address, because resale and risk weigh as much as income.
We always check rents actually registered in the building over the last twelve months, never the rent quoted by the seller.
Frequently asked questions
What is the average rental yield in Dubai?
Between 5 and 8 % gross depending on area and unit type, which translates to roughly 4 to 6 % net once service charges, management and vacancy are deducted.
Which Dubai area offers the best yield?
Outer areas such as JVC and Dubai Sports City post the highest gross yields, around 7 to 8 %. In exchange, vacancy is more frequent and resale slower.
Do tenants pay service charges in Dubai?
No, they remain the owner's responsibility. They are the main reason gross and net yields diverge.
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