UAE Rental Yield Calculator 2026
Work out gross and net rental yield on a UAE property, accounting for service charges, other costs and vacancy.
| Gross annual rent | — |
|---|---|
| Vacancy allowance | — |
| Effective rent received | — |
| Annual costs (service + other) | — |
| Net annual income | — |
| Gross yield | — |
| Net yield | — |
In short
Gross rental yield is annual rent divided by property price. Net yield deducts service charges, maintenance and vacancy first. Dubai apartments typically return 5–8% gross; after service charges, net yields are commonly 1–2 points lower.
Who this is for: Property investors comparing Dubai and UAE units on gross and net rental yield before buying.
Gross yield vs. net yield
Gross rental yield is the simplest measure: annual rent divided by purchase price. It ignores running costs, so it overstates your real return.
Net rental yield subtracts service charges, maintenance, insurance, management fees and a vacancy allowance from the rent first, then divides by the purchase price. It gives a much more realistic picture of the return a UAE property actually delivers.
Formulas:
Gross yield = Annual rent ÷ Purchase price × 100
Net yield = (Effective rent − Service charges − Other costs) ÷ Purchase price × 100
This calculator does not include purchase-time costs (DLD transfer fee, agency commission) in the yield — use our Dubai DLD Fee Calculator to see total buying costs separately, since including one-off purchase costs in an annual yield figure would understate it.
Assumptions
- Gross yield = annual rent ÷ purchase price.
- Net yield deducts service charges, other annual costs and the vacancy percentage you enter from the rent.
- Purchase costs (DLD fee, commission) and financing costs are not included.
Worked example
Gross yield = 90,000 ÷ 1,500,000 × 100 = 6.0%
With AED 12,000 service charges, AED 5,000 other costs and 5% vacancy allowance:
Effective rent = 90,000 − 4,500 = 85,500
Net income = 85,500 − 17,000 = 68,500
Net yield = 68,500 ÷ 1,500,000 × 100 = 4.57%
Frequently asked questions
What is a good rental yield in Dubai?
Rules of thumb vary by area and property type, but net yields above 5-6% are generally considered strong for Dubai apartments; villas often run lower (3-5%) with higher capital-appreciation expectations. Compare similar properties in the same building/community rather than relying on a single city-wide average.
Should I use gross or net yield to compare properties?
Net yield, since it accounts for the real running costs that differ significantly between buildings (service charges especially vary a lot by developer and amenities).
Does this include mortgage costs?
No — this is an unleveraged (cash) yield. If you're financing with a mortgage, your cash-on-cash return will differ once you factor in interest costs.
What is a good rental yield in Dubai?
Gross yields of 5–8% are common for apartments, with villas lower. Net yield after service charges is what matters; anything under 4% net means the investment depends on capital growth.
Are service charges included in rent?
No. In Dubai the owner pays annual service charges to the owners' association; they are deducted from rent to get net yield, which is why this calculator asks for them separately.
People also ask
What is a good rental yield in Dubai?
Gross yields of 5–8% are typical for apartments and 4–6% for villas; net yield after service charges, vacancy and management is usually 1.5–2.5 points lower.
How is rental yield calculated?
Gross yield = annual rent ÷ purchase price; net yield = (annual rent − service charges − maintenance − vacancy − management) ÷ (price + buying costs).
Is rental income taxed in the UAE?
No income tax on rental income for individuals; a 5% municipality housing fee is paid by the tenant via DEWA.
What are typical service charges?
AED 10–30 per square foot a year in Dubai, set by the owners' association and published by RERA per building.
Does the 4% DLD fee reduce my yield?
Yes — the calculator adds DLD, agency and registration fees to the cost base, which lowers the net yield in the early years.
Short-term or long-term rental — which yields more?
Holiday homes can gross more but carry higher management (15–25%), furnishing and vacancy costs; long-term leases are steadier.
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