What is a good rental yield in Dubai?

Gross yields of 6–8% are typical across prime Dubai communities, high by global standards. After service charges, management and voids, a net yield above 5.5% is a strong result. Anything advertised well above 9% deserves close scrutiny of the service charges and the genuinely achievable rent.

How do I calculate net rental yield?

Take annual rent, subtract service charges, management fees, vacancy allowance and maintenance, then divide by the total capital you invested including the roughly 7% purchase costs. That gives your true net yield.

Are service charges negotiable in Dubai?

No. They are set annually by the owners association and approved by the Dubai Land Department’s regulator, so you cannot negotiate them. That is exactly why you should check the per-sq-ft rate before buying — it is a permanent drag on yield.

Is rental income taxed in Dubai?

There is no personal income tax on rental income in the UAE. Tenants pay a 5% municipality housing fee through their DEWA bill. You may still owe tax in your home country — US citizens in particular must report worldwide income.

Which Dubai areas have the highest yields?

Mid-market and emerging communities such as JVC, Arjan, Dubailand and Dubai South typically post the highest gross yields, while prime waterfront and villa districts trade yield for capital appreciation. Our area guides list indicative yields community by community.

Dubai Rental Yield & ROI Calculator

Updated 6 August 2026 · Built by the Cresco Real Estate market team · Figures based on Dubai Land Department and UAE Central Bank published rules.

Calculate the real return on a Dubai investment property — gross yield, net yield after service charges and voids, and how long it takes to earn your capital back.

See your gross yield, net yield after real costs, and how fast you earn your capital back.

Purchase price (AED)

Annual rent (AED)

Unit size (sq ft)

Service charge (AED per sq ft / year)

Management fee (% of rent)

Vacancy allowance (% of rent)

Include ~7% purchase costs in the return?

Gross yield vs net yield — the number that actually matters

Almost every Dubai listing quotes gross yield: annual rent divided by purchase price. It ignores every cost of owning the asset. Net yield subtracts service charges, management fees and void periods, and measures the return against what you truly invested, including transaction costs. That is the number your banker and your accountant care about.

The costs that eat Dubai yields

Cost	Typical range	Notes
Service charges	AED 10–30 per sq ft / year	The biggest variable. Amenity-heavy towers and villa communities sit at the top of the range, simpler mid-market buildings at the bottom.
Property management	5–8% of annual rent	Avoidable if you self-manage, but most overseas owners do not.
Vacancy / void	2–8% of annual rent	Allow at least two weeks between tenancies. Well-priced prime units let faster.
Acquisition costs	~7% of price	DLD fee, agency commission and registration. Real capital you invested, so it belongs in the denominator.
Maintenance & repairs	AED 2,000–8,000 / year	The landlord is responsible for major repairs under a standard tenancy.

A unit advertised at 8% gross with high service charges can easily deliver under 5.5% net. A modest 7% gross in a building with low charges can beat it outright. Service charge per sq ft is the most under-examined number in Dubai investing — always get it in writing before you make an offer.

What counts as a good yield in Dubai?

Across prime Dubai communities gross yields generally run 6–8%, with mid-market and emerging areas at the higher end and ultra-prime villa districts lower, because those buyers are pricing capital growth rather than income. Net yields typically land 1.5–2.5 points below gross. Compare that with roughly 3–4% gross in London and 4–5% in New York — before those cities apply the income and capital-gains tax that Dubai does not.

Frequently asked questions

What is a good rental yield in Dubai?: Gross yields of 6–8% are typical across prime Dubai communities, high by global standards. After service charges, management and voids, a net yield above 5.5% is a strong result. Anything advertised well above 9% deserves close scrutiny of the service charges and the genuinely achievable rent.
How do I calculate net rental yield?: Take annual rent, subtract service charges, management fees, vacancy allowance and maintenance, then divide by the total capital you invested including the roughly 7% purchase costs. That gives your true net yield.
Are service charges negotiable in Dubai?: No. They are set annually by the owners association and approved by the Dubai Land Department’s regulator, so you cannot negotiate them. That is exactly why you should check the per-sq-ft rate before buying — it is a permanent drag on yield.
Is rental income taxed in Dubai?: There is no personal income tax on rental income in the UAE. Tenants pay a 5% municipality housing fee through their DEWA bill. You may still owe tax in your home country — US citizens in particular must report worldwide income.
Which Dubai areas have the highest yields?: Mid-market and emerging communities such as JVC, Arjan, Dubailand and Dubai South typically post the highest gross yields, while prime waterfront and villa districts trade yield for capital appreciation. Our area guides list indicative yields community by community.

Related Cresco tools & guides

Want the real service charge and achievable rent before you buy?

Our team can pull the actual service-charge rate and comparable rents for any building you are considering, so your yield model is built on facts rather than listing claims.

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Disclaimer: This calculator provides indicative estimates based on published Dubai Land Department fees and UAE Central Bank lending rules current at the time of writing. Actual costs vary by developer, bank, property and transaction structure. Figures are not financial, legal or tax advice. Speak to a licensed advisor and confirm all figures with your bank and the DLD before committing to a purchase.