Quick answer
- Gross rental yield = annual rent ÷ purchase price × 100.
- Net rental yield = (annual rent − service charges − maintenance − management − vacancy) ÷ (price + buying costs) × 100.
- In our worked example a AED 1.2M apartment renting for AED 90,000 a year gives a 7.5% gross yield but only about 5.4% net (5.8% if it is let all year).
- Imperial Realty’s free rental yield calculator does the maths for any property in Dubai.
Rental yield is the single most useful number when you compare investment properties in Dubai. This guide from Imperial Realty Dubai explains the two formulas, walks through a worked example in dirhams, and shows the current price per square foot by area so you can sanity-check any listing.
Gross rental yield: the quick check
Gross yield = (annual rent ÷ purchase price) × 100
If an apartment costs AED 1,200,000 and rents for AED 90,000 a year:
AED 90,000 ÷ AED 1,200,000 × 100 = 7.5% gross yield
Gross yield is useful for a first screen, but it ignores every cost of owning the property.
Net rental yield: the number that matters
Net yield = (annual rent − annual costs) ÷ (purchase price + buying costs) × 100
Costs to include:
- Service charges. Set per square foot by the building’s owners’ association and published through the Dubai Land Department’s Mollak system.
- Maintenance. Budget around 0.5–1% of the property value a year for repairs.
- Property management. If you use a manager, usually a percentage of the annual rent.
- Vacancy. Allow two to four weeks a year between tenants.
- Buying costs. The 4% DLD transfer fee plus registration and trustee fees (and 2% agency commission on a resale purchase).
Worked example: a AED 1.2 million one-bedroom
This example uses illustrative numbers, not a specific building:
| Item | Amount |
|---|---|
| Purchase price | AED 1,200,000 |
| DLD fee (4%) + registration | AED 52,000 |
| Total investment | AED 1,252,000 |
| Annual rent | AED 90,000 |
| Service charge (750 sq ft × AED 15) | − AED 11,250 |
| Maintenance (0.5%) | − AED 6,000 |
| Vacancy (3 weeks) | − AED 5,200 |
| Net annual income | AED 67,550 |
Net yield = AED 67,550 ÷ AED 1,252,000 × 100 = about 5.4%. Without the vacancy allowance (a property let for the full year) it rises to roughly 5.8%. Both are well below the 7.5% gross figure, which is why Imperial Realty always shows clients a net calculation.
Price per square foot by area (August 2026)
Lower entry prices per square foot often mean higher percentage yields. Average apartment sale prices:
| Area | Price per sq ft |
|---|---|
| Jumeirah Village Circle (JVC) | AED 1,449 (1-bed) / AED 1,410 (2-bed) per sq ft |
| Jumeirah Lake Towers (JLT) | AED 1,816 (1-bed) / AED 1,868 (2-bed) per sq ft |
| Dubai Marina | AED 2,272 (1-bed) / AED 2,225 (2-bed) per sq ft |
| Business Bay | AED 2,307 (1-bed) / AED 2,508 (2-bed) per sq ft |
| Dubai Hills Estate | AED 2,441 (1-bed) / AED 2,463 (2-bed) per sq ft |
| Dubai Creek Harbour | AED 2,571 (1-bed) / AED 2,634 (2-bed) per sq ft |
| Downtown Dubai | AED 2,889 (1-bed) / AED 3,425 (2-bed) per sq ft |
| Palm Jumeirah | AED 3,425 (1-bed) / AED 4,661 (2-bed) per sq ft |
Source: Bayut market analysis, August 2026. Actual prices vary by building, floor and view.
Off-plan: yield starts at handover
With off-plan property you earn rent only after handover, but you also pay in instalments, so less of your money is invested in the early years. When comparing, calculate the yield on the full price at handover and weigh it against the payment plan. Examples of investor-friendly entry points:
- RAW District by Imtiaz: fully furnished apartments from AED 649K, handover Mar 2029
- Binghatti Wraith: studios from AED 800K near Downtown, handover Dec 2027
- Rosehill at Dubai Hills Estate: Emaar apartments in Dubai Hills Estate from AED 1.68M
Five ways to raise your yield
- Buy the layout tenants want. One-bedrooms with a balcony usually let fastest.
- Check service charges before you buy. They differ widely between buildings in the same area.
- Furnish smartly. Furnished units can command higher rent, especially near business districts such as Business Bay and DIFC.
- Consider holiday-home licensing. Short-term letting with a Department of Economy and Tourism permit can outperform a long lease in the right location.
- Keep it occupied. Renew early, keep rent at market level and fix issues quickly.
Get a yield report from Imperial Realty
Send us any Dubai listing or project and Imperial Pacific Real Estate will return a gross and net yield calculation with current service charges. Call +971 4 452 8881, use the calculators on imperialrealty.ae, or visit our Business Bay office.
Frequently asked questions
What is a good rental yield in Dubai?
Many investors aim for a net yield of 5% or more. Mid-market communities such as JVC often produce higher percentage yields, while prime areas such as Downtown and Palm Jumeirah usually yield less but have historically delivered stronger capital growth.
Should I use gross or net yield to compare properties?
Use net yield. Two apartments with the same rent can produce very different net returns once service charges, which are set per square foot, and buying costs are included.
Is rental income taxed in Dubai?
Dubai has no personal income tax on rental income for individuals holding property in their own name. Check your home country’s rules, as some countries tax worldwide income.
Does Imperial Realty manage rental properties?
Yes. After handover Imperial Pacific Real Estate can find and vet tenants, register the Ejari lease and manage the property, so the yield you planned is the yield you receive.
Sources: Price per sq ft: Bayut market analysis, August 2026 · Dubai Land Department fee schedule
Imperial Realty (Imperial Pacific Real Estate L.L.C) is a Dubai real estate agency at The Exchange Tower, Business Bay. Prices quoted are starting prices published by developers on the date of writing and can change; an advisor confirms the latest figures before you reserve.
