Rental yield in Dubai: how to calculate it
Rental yield shows what share of a home’s price you earn each year by renting it out. Work it out before you buy.
The formula and an example
An apartment costs AED 2,000,000 and rents for AED 130,000 a year. Gross yield: 130,000 ÷ 2,000,000 = 6.5%. If service charges and upkeep take AED 25,000 a year, net yield is 105,000 ÷ 2,000,000 = 5.25%.
What to include
Add the 4% DLD fee to the purchase price: at AED 2,000,000 the full cost is AED 2,080,000, and the yield is slightly lower. Also allow for periods when the home sits empty between tenants.
What yield depends on
The area, the type and size of the home, and the format: long-term lets are steadier, while short-term lets can earn more but need managing.
Long-term and short-term lets
Long-term lets give steady income and less hassle. Short-term (holiday) lets can earn more but need a permit, management and allowance for seasonality.
How to check rents
The Dubai Land Department publishes a rental index by area. Check any forecast against it before relying on a seller’s promises.
How PromptEstates helps
PromptEstates shows a yield forecast for every project based on rents in the area, next to the price and payment plan.
Frequently asked questions
What counts as a good yield?
There is no absolute benchmark. Compare a project’s yield with the area average and with alternative investments.
Should you factor in a mortgage?
Yes, if you buy with a loan: interest reduces net income. In that case yield is calculated on the equity you put in.
Does yield grow over time?
It depends on rents and prices: if rents grow faster than the price, the yield rises.
Sources: Dubai Land Department
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